(Bloomberg). — The gold price remained near its 19-month peak after a ban on Russian oil imports. This was due to mounting inflation concerns and increased economic growth, which boosted demand for this safe haven asset.

Bullion gained 12.2% in 2022, and investors are closing in on records as they seek to store value in the face of inflationary shocks. Bloomberg initial data show that the gold-backed, exchange-traded funds’ holdings are at their highest point since March 2021. This year they have received about 152 tonnes of inflows. 

All commodities have been affected by the sanctions imposed on Russia and Ukraine’s war on Ukraine. U.S. and U.K. have banned Russian oil imports, provoking further concerns about rising prices and higher costs for raw materials like food and energy. 

“The ban on Russian oil by the U.S. is causing more inflation jitters,” said Howie Lee, an economist at Oversea-Chinese Banking Corp. “We all saw that coming, but still, it feels like a roller coaster drop moment. Oil is expected to trade at record levels with this ban. By that correlation, it is not difficult to see why gold may also be trading at a new record high soon.”

The price per ounce fell 0.2% at $2,047.05 to 10:24 AM in Singapore. The prices touched $2,070.44 Tuesday morning, $5 less than the august 2020 record.

Nominal gold prices should breach $2,125 over the next three months and trade in a higher range for the rest of 2022 as “financial markets grapple with surging headline inflation, geopolitical uncertainty, and recession tail risks,” Citigroup Inc (NYSE:). Aakash Doshi and other analysts stated in March 8th, 2008.

Concerns about possible supply disruptions led to a 3% increase in Palladium. Russia is the largest producer of this metal globally, accounting for around 40%. Both silver and platinum traded close to June’s highs.

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