Gold prices have begun to trade higher this week as the Russia Ukraine war intensifies. The Nova Kakhovka dam in a Russian-controlled Kherson region was blown up on Monday, flooding huge swathes of land and putting some 22,000 people at risk of catastrophic flooding and evacuation.
With Ukraine blaming Russian sources for the attack, this significantly ratchets up the intensity of the war, with some calling it one of the most damaging events thus far.
The destruction once again raises fear of food shortages – as we saw early in the war – with crops and grains at risk. On the back of these fears, gold prices steadily increased as a result of safe haven demand.
The yellow metal is currently trading around the £1,580 ($1,965) mark.