Gold prices just like most commodities have soared in 2022.
Geopolitical issues have certainly contributed to this.
On March 8, the gold market reached its highest level since August 2020, as investors sought safe-haven assets in the aftermath of Russia's invasion of Ukraine.
The Russian invasion of Ukraine is causing a destabilization of world economies and this uncertainly is feeding into the rising price of gold. I cannot mention this war without expressing my objection to war and would wish to see peace in Ukraine and an end to the needless suffering of the people of Ukraine.
The precious metal has recovered after a late-January drop. The potential of additional interest rate hikes in the United States this year, which were predicted to weigh on the gold price in 2022, continues to put pressure on it. Some market analysts believe the US Federal Reserve (Fed) chairman Jerome Powell's comments would lead to as many as five interest rate hikes this year.
Inflation is a great worry worldwide. Gold is seen as a hedge against inflation and a safe haven store of value in uncertain times. In the short term I see no major downward movement in the gold price.
Much of my craft involves silver. By far silver claddagh rings are the most popular of all my products. However gold is an important part of my craft work.
I have had to make a tiny increase to the price of some products, for the most part I am trying to absorb the increase by reducing my profit margin and therefore shielding my customers from the increased gold prices.