February has proved to be the perfect storm for gold - with inflation, falling stock markets, and geopolitical uncertainty

U.S stock indexes slid more than 1% yesterday, led by losses in bank stocks, as Russia’s all-out invasion of Ukraine sparked a widespread selloff in global markets. On the benchmark S&P 500, all the 11 major sectors slipped into the red, with financial stocks falling 2.9%, while tech and consumer discretionary stocks lost more than 1% each. 

Russian forces invaded Ukraine in a mass assault by land, sea, and air, the biggest attack by one state against another in Europe since World War Two. The escalation in conflict rattled financial markets as global shares slumped and oil prices broke above $100 a barrel, while safe havens gold, government bonds and the dollar surged in the flight to safety. 

The United States and its allies promised tough sanctions against Moscow after weeks of fruitless diplomatic efforts and an initial wave of modest sanctions. Most big lenders, including Bank of America Corp, Citigroup Inc., Wells Fargo and Goldman Sachs Group Inc. slipped over 4% each.

Economic Calendar

Dow Jones Industrial Average

The Dow Jones Industrial Average gained 0.28%. The best performers of the session on the Dow Jones Industrial Average were Salesforce.com Inc., which unchanged 0% or 0 points to trade at 196.84 at the close. Meanwhile, Microsoft Corporation was unchanged 0% or 0 points to end at 287.93, and Intel Corporation was unchanged 0% or 0 points to 45.04 in late trade. The worst performers of the session were Merck & Company Inc., which unchanged 0% or 0 points to trade at 76.37 at the close. JPMorgan Chase & Co unchanged 0% or 0 points to end at 152.14 and Procter & Gamble Company was 0% or 0 points to 159.90.

Elliot Waves trading idea for SP500 DowJones and Nasdaq

NASDAQ 100

The NASDAQ index gained 3.34%. The top performers on the NASDAQ Composite were Cyren Ltd which was unchanged 0% to 2.2700, Lantheus Holdings Inc. which was unchanged 0% to settle at 28.85 and Imperial Petroleum Inc. which was unchanged 0% to close at 0.49. The worst performers were HeadHunter Group PLC ADR which was unchanged 0% to 38.99 in late trade, Versus Systems Inc. which was unchanged 0% to settle at 2.155, and Yandex NV which was unchanged 0% to 44.75 at the close.

Oil

Oil prices jumped today by nearly 3% on concerns of global supply disruptions from the impact of trade sanctions on major crude and fuel exporter Russia after it invaded Ukraine. U.S crude touched a high of $95.64 a barrel, and was last up $2.37, or 2.6%, at $95.18. 

The start of the invasion in Ukraine on Thursday caused prices to surge above $100 a barrel for the first time since 2014, with Brent touching $105, before paring gains by the close of trade. The massed Russian assault by land, sea, and air was the biggest attack on a European state since World War Two, prompting tens of thousands of people to flee their homes. Asian buyers, clearly nervous into the weekend, have piled into oil today sending prices higher once again, helped along by reports of explosions in Kyiv. In response to the invasion, U.S. President hit Russia with a wave of sanctions on Thursday, measures that impede Russia's ability to do business in major currencies along with sanctions against banks and state-owned enterprises.

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Precious and Base Metals

Gold rose today, stabilizing after big swings in the previous session when prices jumped as much as 3% before closing lower, as investors reassessed the fallout of the Ukraine crisis and fresh sanctions imposed by the West against Russia. Palladium resumed its rally, with traders cued in for signals on potential supply shortfalls from Russia. Spot gold rose 0.7% to $1,916.10 per ounce, after hitting its highest since September 2020 at $1,973.96 yesterday. 

The contract was set for a fourth straight weekly gain. U.S gold futures, however, shed 0.5% to $1,917.60. In the near term, investors are still digesting, still assessing risks and rewards as a result of the Ukraine invasion and the implications of Western sanctions on Russia. The Russian invasion has been pegged as the biggest attack on a European state since World War Two. 

Elliott waves signal for Gold update

February has proved to be the perfect storm for gold - with inflation, falling stock markets, and geopolitical uncertainty boosting its safe-haven appeal. Exchange-traded funds that invest in gold and other precious metals have seen massive inflows this year. Palladium gained 2.7% to $2,465.85, after scaling a peak since July 2021 at $2,711.18 yesterday, on course for a third weekly rise. With platinum and palladium being a key export for Russia, we simply rushed to those exits, covering shorts. 

Today, platinum and palladium are simply following gold. Russia's Nornickel is a major producer of both metals used in catalytic converters to clean car exhaust fumes. Spot silver rose 0.5% to $24.33 per ounce, platinum was up 0.3% to $1,059.97.

Traditional Agricultures

Wheat futures spiked by their daily trading limit on Thursday to their highest since mid-2012 and corn futures touched eight-month peaks after Russian forces attacked Ukraine, exacerbating worries over global grain supplies. Soyoil futures notched an all-time high on concerns about global vegetable oil supplies amid conflict in the major sunflower oil-producing region. 

Soybean futures eased on profit-taking after setting fresh 9-1/2-year highs overnight. Russian forces invaded Ukraine by land, air, and sea, confirming the worst fears of the West with the biggest attack by one state on another in Europe since the Second World War.

The game is still in the air, and the markets know it

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