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On this day — February 3, 2022

Chinese New Year: Chinese gold demand surges in the lead-up to Lunar New Year as families exchange gold pendants, rings and bars. Year-on-year, China's January–February gold imports run 30–50 percent above other months.

Thursday — a normal trading day. Weekly US initial jobless claims publish at 8:30 AM ET on Thursdays, occasionally producing intraday gold movement.

Day 34 of 365 · Q1 2022 · 9.3% through the year

February 2022 gold market: Russia invades Ukraine; gold surges

Bullish

A powerful safe-haven surge on the outbreak of war.

Gold rallied through February and exploded higher after Russia invaded Ukraine on February 24, vaulting toward $1,970 as investors fled to safety. The war added a powerful geopolitical and inflationary impulse on top of an already tense macro backdrop.

What drove gold in February 2022

  • Russian invasion of Ukraine (Feb 24)
  • safe-haven flight
  • surging energy and commodity prices
  • sanctions and reserve-freezing fears
Themes#geopolitics#Russia–Ukraine war#safe-haven demand

Key events in February 2022

  1. Feb 24Russia invades Ukraine; gold spikes toward $1,970

What happened next

The war drove gold to a near-record in early March before the Fed's first hike turned the tide.

For gold buyers

February's war-driven spike rewarded existing holders but, as so often with geopolitical rallies, set a short-term top for new buyers.