Gold Stocks: GOLD, GLD, NEM Jump Into Spotlight on Russia-Ukraine Invasion


Gold stocks are marching higher this morning as investors flee equities and pile into safe-haven assets.

Closeup of a large gold nugget. stocks under $10
Source: Shutterstock

Spot gold prices climbed more than 2% on news that the Russian military has invaded Ukraine and is bombarding the country with air strikes.

Investors, who are selling off stocks, are turning this into good news for gold-related investments. The SPDR Gold Trust (NYSEARCA:GLD) exchange-traded fund (ETF), is up 2% today amid a broader market downturn. Barrick Gold (NYSE:GOLD), a gold-mining company, is also outperforming the market.

What Happened With Gold Stocks

Gold is trading at $1,968.01 per ounce in London, England, up 3.17% from the previous day and its highest level since late 2020. Oil and other commodity prices are also up sharply today.

The spike in gold prices comes as the situation in Ukraine is rapidly deteriorating, and news reports from inside the country are difficult to confirm. Ukrainian Foreign Minister Dmytro Kuleba reported that multiple cities are under Russian attack.

Why It Matters

While the prices of stocks and cryptocurrencies plunge today, gold prices and stocks tied to the gold sector have been one bright spot. Although Newmont (NYSE:NEM) and Barrick have dipped since trading began, they are still outperforming the major indices. Big Tech players like Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) have each fallen more than 2%.

The price of gold is now up about 8% so far in February, on pace for its biggest monthly gain since July 2020. Investors typically seek out gold in times of turmoil and market volatility as it is viewed as less risky than many other asset classes. Conversely, the price of Bitcoin (BTC-USD) is down more than 5% today to around $35,500 per coin.

What’s Next

Stock markets around the world are taking a beating today as major averages in Asia and Europe also selloff sharply. How long the downturn lasts and its severity will depend largely on efforts to stop the Russian attack. However, in the near term, investors are likely to continue repositioning money into gold and gold-related securities as the flight to safety continues.

On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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