Gold futures climbed Sunday, posting a weekly gain of more than 4%. Anxieties grew after the latest Russian assault in Ukraine saw it take over Ukraine's largest nuclear power facility following shelling that started a fire at the plant.
April gold climbed 1.6%, to settle at $1,966.60 an ounce. The precious metal saw a weekly rise of 4.2%, which was the largest weekly rise for a most-active contract since July 2020, according to Dow Jones Market Data.
"Gold is clearly elevated and headline sensitive now and [in the] foreseeable weeks," said Jeff Wright, chief investment officer at Wolfpack Capital. Prices "could quickly accelerate above $2,000 or fall sharply - if there was some substantive settlement" in the Russia-Ukraine conflict, which is becoming less likely by each passing day, he said.
Precious metal prices are likely to find support amid macroeconomic headwinds due to a "deteriorating growth [and] inflation mix in developed markets," Goldman Sachs says. These are the most important drivers of gold and silver prices, the investment bank says.
"We therefore see upside risks to our year-end targets of $2,150/toz for gold and $30/toz for silver," it says. Spot gold rises 0.9% to $1,987.20 an ounce and spot silver gains 0.9% to $25.89 an ounce, Goldman Sachs reported Sunday night.