Posted 4th Mart 2022

Russia’s Shelling of Nuclear Power Plant Sees Investors Flee From Equities Again

Kinesis Market Analysis by Carlo Alberto De Casa

This nuclear element and all the worst Cold War fears it reawakens, has understandably cast a vast cloud over any macroeconomic event. So while on a typical Friday, investor attention would be on the release of US non-farm payrolls, which are forecast to show another strong month of employment figures in February. Indeed, the economic outlook looks healthy with positive industrial construction data published today by France, Germany and Italy.

Yet in a clear sign of how concerning globally the war in Ukraine is, stock markets are plunging again with the Euro Stoxx 500 sinking to a 12-month low amid another day where global indices are a sea of red.

Gold Price Analysis

Gold ($/g) - 15 minutes chart from Kinesis Exchange
Gold ($/g) – 15 minutes chart from Kinesis Exchange

Gold has been one of the few beneficiaries of the dreadful scenes in Ukraine with investors rushing to safe havens at a time of crisis. But while the price is now trading at around $1,940 an ounce at levels not seen for 14 months, it has failed to climb noticeably higher despite the dramatic escalation in the Ukrainian conflict with Russia’s shelling of Europe’s largest nuclear power plant.

Silver Price Analysis

Silver looks to have found its ceiling for the time being with the precious metal now trading comfortably above $25 an ounce but failing to break through resistance at around $25.60. After a similar push in November broke down at similar levels, silver’s upward momentum on the back of the rush to haven assets looks to have stalled. Yet for investors who have held silver since the start of the year, it has still been a rewarding couple of months with the price having gained almost $3 an ounce. 

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