Ukraine crisis offers gold a chance to shine
Russia's threats to Ukraine are pushing the price of gold higher. But investors are also worried that US interest-rate rises could go too far and spark a recession.

When things get really scary, investors don’t buy bitcoin, they buy gold, says Karen Maley in the Australian Financial Review. Last year was disappointing for gold, as inflation fears boost cryptocurrencies, dubbed “digital gold” by some, at the expense of the physical kind. Yet “the threat of an imminent European war” has pushed gold up 5% this month to $1,900/oz, an eight-month high. Meanwhile, bitcoin has fallen 20% so far this year. Gold has got an additional boost from “stronger physical demand”. Consumption in China, the world’s largest gold consumer, rose by more than a third last year amid a strong economic recovery from Covid-19.
Precious-metal mutual and exchange traded funds enjoyed five consecutive weeks of net inflows through 16 February, says Hardika Singh in The Wall Street Journal. A sign of strong investor interest, that is the longest streak since August 2020, when gold hit an all-time high of $2,067/oz.
It’s not just geopolitics that is pushing gold higher, says Neil Hume in the Financial Times. Investors are growing worried that upcoming hikes in US interest rates – needed to fight inflation – could go too far and tip the world’s biggest economy into recession. “There is an increasing sense that the Fed is significantly running behind the curve,” independent gold analyst Ross Norman tells the FT. “They might have to move quite aggressively and… therefore the chances of a policy error are getting increasingly large.”
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
If that happens then stocks will suffer, while gold could be a safe haven. “We would expect gold [ETF] inflows to accelerate as investors partly shift out of equities into gold,” says Mikhail Sprogis of Goldman Sachs, who thinks the price could reach new highs in the next few months.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Alex is an investment writer who has been contributing to MoneyWeek since 2015. He has been the magazine’s markets editor since 2019.
Alex has a passion for demystifying the often arcane world of finance for a general readership. While financial media tends to focus compulsively on the latest trend, the best opportunities can lie forgotten elsewhere.
He is especially interested in European equities – where his fluent French helps him to cover the continent’s largest bourse – and emerging markets, where his experience living in Beijing, and conversational Chinese, prove useful.
Hailing from Leeds, he studied Philosophy, Politics and Economics at the University of Oxford. He also holds a Master of Public Health from the University of Manchester.
-
Accelerating state pension age hikes could cost Brits in early 50s almost £18,000
A recently launched review of the state pension age has sparked concern that the planned increases could be accelerated. How much could it cost you?
-
How to invest according to your age - the one rule everyone can follow
Whether you’re a seasoned investor or new to the game, here’s the one investing rule to help determine how much you should invest according to your age
-
How to use SAYE and SIP schemes to multiply your money
Employers’ savings or share-incentive plans like SAYE and SIP schemes can help top up your pension
-
Where investors can find value now
Opinion Active fund managers and blue chips on both sides of the Atlantic look appealing, says ByteTree’s Charlie Morris
-
Personal Assets Trust: a fund to protect your wealth
Personal Assets Trust aims to shelter its shareholders’ assets from volatile markets
-
Farming isn't for the faint-hearted – there are no profits to harvest
Opinion Farming may look appealing, but turning a profit is extremely hard. No wonder many farmers are attracted to the Sustainable Farming Incentive, says Max King
-
AJ Bell: a fine British fintech going cheap
Opinion Don’t overlook investment platform AJ Bell, a significantly undervalued British business with an excellent financial base
-
The British railway industry is in rude health – here's why investors should jump aboard
The railway industry has bounced back from the devastating impact of the pandemic and is entering a new phase of development – and profitability
-
Infrastructure investing: a haven of stable growth amid market turmoil
From booming construction in emerging markets to digital and green transitions, the infrastructure sector offers security, returns and long-term opportunities
-
The costly myth of “sell in May”
Opinion May 2025's strong returns for US stocks have once again shown that putting too much weight on seasonal patterns will only make investors poorer, says Max King