Gold’s surge on the back of Russia’s invasion of Ukraine may be short-lived, if history is anything to go by.
From the Falkland Islands War in 1982 to the Sept 11 attacks, price spikes in gold resulting from crises that include military action or terrorist strikes tend to be temporary, according to Citigroup Inc. The traditional haven asset jumped as much as 3.4% on Feb 24 when Russia launched a full-scale attack on its neighbour, but prices have since consolidated, even as other commodities such as oil, wheat and aluminum have accelerated.
