On Tuesday, March 8, gold traded to an intraday high of $2078, roughly $10 below the all-time high of $2088, which was achieved in August 2020. The current decline in gold is the first real price decline since January when gold hit a low of approximately $1780.

Yesterday traders experienced wild gyrations and volatility when president Zielinski said he was willing to compromise to resolve the escalating military action by Russia. Gold futures opened at $2060 and closed at approximately $1986 based upon the possibility that a diplomatic solution could emerge resulting in Russia removing its troops from Ukraine.

Today was an absolute game-changer. Given that the recent ascent in gold to just under the record high of $2088 was absolutely news and headline-driven, changes in those headlines will have a dramatic and profound impact on the direction and price gains or losses in gold.

Today gold spiked with a massive gain of $82, taking gold futures within $10 of the record high at $2088, which occurred in August 2020. Just as quickly as gold rose dramatically higher profit-taking and a recovery of U.S. equities resulted in gold trading off of the highs giving up over half of the gains from the intraday high.

Gold continues to gain value based upon rising inflation levels and the current crisis in Ukraine. The combination of geopolitical tensions and high levels of inflation are highly supportive of higher gold and silver pricing in the future. Also, major selling pressure resulting in lower prices in U.S. equities has market participants moving risk-on investment dollars into safe-haven assets.

Gold prices have been moving to a higher value at a pace not witnessed in quite some time. On Monday, gold futures basis most active April 2022 contract opened at $1920 and closed at $1900 after recovering from a low of $1893. On Tuesday gold prices gained over $40 and accelerated the defined uptrend that began the first week of January. The rally has continued today.

"In Europe and America there's a growing feeling of hysteria, conditioned to respond to all the threats in the rhetorical speeches of the Soviets … Mister Putin says * "We will bury you," I don't subscribe to this point of view, it'd be such an ignorant thing to do, If the Russians love their children too"

Today gold prices declined as Russian and Ukrainian diplomats met to negotiate an end to the war. We are seeing the same reaction that occurred during their first round of negotiations, which was a softening of gold pricing and then a return to a rally mode once it was apparent that the negotiations ended in a stalemate.

Now on its sixth day, the premeditated invasion of Ukraine by Russia has been met by fierce resistance by Ukraine’s military and the civilian population as they defend their country. It has also united Democratic countries globally to condemn the egregious actions of Vladimir Putin by implementing the strongest sanctions ever issued.

It was a volatile trading session across multiple asset classes as concerns surrounding Russia’s invasion of Ukraine continued to grow. Tensions have increased as Russia’s invasion continues to escalate, with no real sign of a peaceful resolution through diplomacy seeming possible.