The gold price hit a record high of $1.1024 per ounce on Monday, the highest in nearly two weeks.
The gold price is the most-traded commodity in the U.S. bullion market, with investors gobbling up bullion at record levels and banks and hedge funds gobbling more than $1 trillion.
The surge came as China and the European Union launched sanctions against Russia over its annexation of Crimea, an escalation that could be a threat to the U!
Russia said the sanctions were an effort to “harm the global economy” and that Moscow will respond with “maximum force.”
The U.K. announced it would ban foreign companies from trading in U.s. equities.
Meanwhile, China, the world’s largest economy, launched a $3.2 trillion bond-buying program, and Europe imposed sanctions on U.A.E. officials.
Gold prices were up on the week as investors scrambled to buy into the new bullion.
But, with gold down more than 15% this year, traders are now looking for ways to keep their holdings safe.
“The gold bullion rally has been incredibly volatile this week and we are in uncharted territory.
The current price is well below the average for a bullion price rally of around 2.5% per week.
The bullion has been a strong performer this year and will continue to be a strong contributor to the bullion value over the next year,” said Brian D’Angelo, a U.C. Davis professor of finance.”
We are still waiting for the Chinese yuan to break the record for a daily increase of over $500 and the U,S.
gold price to break its historic high.
We are looking for some kind of long term support for gold and the gold market,” he added.
But investors aren’t waiting for gold to break that record.
They are looking at ways to use gold as a way to hedge against the coming shock.
is already seeing some of the worst volatility in a century.
Gold futures have surged nearly 400% this week to $1 a pound, a level not seen since April 18, 1917.
But there are still some signs of hope.
On Friday, the U-K.
began the process of banning foreign companies that trade in U.-sourced equities from trading U. s bullion, including gold.
The move follows Russia’s decision to seize Crimea and Beijing’s declaration that it is now a country that is not a party to the Shanghai Cooperation Organization, the international body that oversees global trade.
Russian President Vladimir Putin said Monday that Russia will respond to the sanctions with “the maximum force.”
“We will retaliate immediately with the greatest force and with all possible speed, according to the wishes of the Russian side,” Putin said.
A week ago, China and Europe announced that they were taking the first steps to impose more sanctions on Russia over the annexation of the Crimean Peninsula.
The new measures could potentially be used as leverage against the U., which has been pushing to join the Shanghai deal.
The two countries have been at odds over Russia’s actions in Crimea and the use of Russian soldiers in the conflict in eastern Ukraine.