Growing Russia Tensions Boost Gold, Sink Stocks

With the Ukraine-Russia conflict intensifying again, investors have shifted to a more defensive stance, extending yesterday’s rally in precious metals. Gold is up 1.0% while Silver is up 0.9%. Commodities are struggling today with US Crude Oil down 0.6% and Copper down 0.3%.

Interestingly, Bitcoin, usually seen as an indicator of risk appetite, is up 1.2% at a new all-time high above $92,500 suggesting it may be attracting capital seeking alternative markets or continuing its post-US election run. The US 10-year treasury note yield has slipped back under 4.0%. US bonds may also be attracting capital seeking a saft haven.

Stocks, on the other hand, are starting to sell off. US index futures are down 0.3%-0.5%. Continental European bourses closer to the conflict are getting hit harder with Frankfurt down 1.2%, Paris down 1.4% and Milan down 2.2%. London is down 0.5%.  

Earnings season for US retailers gets underway in earnest today with results from Walmart ($0.58 vs street $0.53, up 2.9% premarket) and Lowes ($2.89 vs street $2.82) George Weston also beat the street ($3.56 vs street $3.44).

Today’s economic news was disappointing. Canada consumer prices (2.0% vs street 1.9% and previous 1.6%) rose more than feared, suggesting that inflation may be bottoming out and starting to accelerate again. US housing starts (1.311M vs street 1.33M) landed short of expectations.

Terms and Conditions:


This information is for Investment Advisors only. The website is for informational purposes only and is not intended to provide a complete description of SIA Wealth Management’s products or services. Past performance is not indicative of future results. It should not be construed as investment advice or relied upon in making an investment decision. Products and services of SIA Wealth Management are only offered in jurisdictions where they may be lawfully offered for sale. The information contained in this Website does not constitute an offer or solicitation by anyone to buy or sell any investment fund or other product, service or information to anyone in any jurisdiction in which an offer or solicitation is not authorized or cannot be legally made or to any person to whom it is unlawful to make an offer of solicitation. All products and services are subject to the terms of each and every applicable agreement. It is important to note that not all products, services and information are available in all jurisdictions outside Canada.

SIA Wealth Management Inc. (SIAWM) specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, Advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIA Wealth Management Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.