The Week In Hindsight, 07 march 2014
Gold closed out another positive week on Friday after benefiting from safe haven demand in light of the recent uncertainty surrounding events in the Ukraine. The metal climbed $30 at the open of the week to test the $1255 per ounce level. Despite several knocks backward, prices have continued to see a strong gravitational pull back toward the $1255 barrier, even after US Non- farm payrolls topped expectations.
UK natural gas futures also climbed 10.7% from trough to peak at the opening of the week as markets began to digest the weekend’s events. A similar scenario played out with both Brent and WTI oil benchmarks which saw prices climb $3 on each before retreating back during the mid stages of the week.
With no sign of a resolution being on the immediate horizon and western officials yet to reveal their game plan, it is likely that gold, oil and gas prices will see further upside over the week ahead. We continue to hold a positive outlook for oil price moving into Q2 while we would expect gold prices to remain elevated the entire time that the threat of major conflict, or price inflation, exists.