Spot gold price earlier this week was close to $2075/ounce, but after traders booked their profits, this saw the yellow metal drop below $2000 after it reached this new high.

Inflation is hitting highest levels for decades and the outlook is bleak for the short term.

Experts in commodity markets believe that the sharp rise of precious metal prices was mainly due to increasing amount of bad news filtering through from Russia-Ukraine conflict. They stated that the general sentiment for gold prices is still positive, and you are probably going to find a lot of support at lower levels.

As U.S. President Joe Biden announced his intention to revoke Russia’s “permanent normal trade” status, the gold market saw some gains in its early morning losses.

This status could be lost, which would affect Russia’s trade capabilities and allow the West for tariffs to be imposed on a wide variety of Russian goods and companies.

Spot market gold prices are currently supported at $1970 an ounce, which has held for the last few days. Spot gold has major support at $1920 an ounce. Investors in gold should be aware of their levels and keep a tight stop loss when taking positions in the yellow metal. The price of gold is expected to remain sensitive to Russia-Ukraine news.