Why have crude oil and gold prices moved sharply higher in last few days?

Brent Crude prices on Tuesday got perilously close to $100/bbl but eventually settled lower around $96 on Wednesday. There was a spike in panic after Putin sent troops into Ukraine and the US, UK, EU and Canada imposed sanctions on Russia. Oil was also hit by fears of supply disruptions since Russia supplies 35% of oil and gas needs of Europe. This marks the highest crude price level since September 2014.

Let me turn to your question on gold. Incidentally, Gold has emerged as the best-performing asset class of 2022 after -3.6% negative returns in 2021. Gold also gains in the mist of uncertainty. Geopolitical tensions in Ukraine are making gold more attractive. Gold had rallied 25.1% in 2020 amidst COVID uncertainty. However, a very sharp rally in gold is doubtful due to bond yields being so high.