Gold and silver have seen volatility so far this week on growing tensions over Ukraine and Russia. Increasing rhetoric and warnings of a potential invasion have spooked stock markets, and spurred safe haven buying from investors.

After an already strong previous week, Friday evening in particular saw quick gains as the US, UK, and other nations withdrew embassy staff from Ukraine and advised citizens to leave as soon as possible. Diplomatic efforts continue, and markets have been calmed somewhat today following the announcement that some of Russia's troops would be leaving the border after completing their military exercises.

Markets are of course concerned of any military action in Europe, but also of severe financial sanctions being threatened by the US, UK and EU. Oil and gas prices had already risen in response as markets price in Russian supplies potentially being cut off. Following months of severely high energy prices, any further rises will only push inflation higher. Hawkish central bankers are already beginning to raise interest rates, despite the risk of slowing growth and hurting stock markets.

Gold is trading at €1,630.33/$1,845 per ounce today, having climbed yesterday to €1,661.12 per ounce - its highest in Euros since August 2020. Gold remains near all-time high territory in Europe and investors will be watching for any further news of increasing tensions.

Any signs of a potential invasion will likely see gold push higher, and potentially beyond the previous Euro record, but if Russian troops continue to move away from the Ukraine border, markets will likely recover further.