Russian Ukraine conflict pushes gold prices to 16-month highs-sectors most likely to benefit

 So should you invest in gold?

Under the current circumstances, the outlook for gold looks bullish, The yellow metal soared to a 16- month high of $1,970 an ounce after Russia attacked targets across Ukraine.K

Another contributing factor in the surge of gold prices has been hedging against inflation in the US economy.

Market participants are waiting on the Fed policy meeting scheduled for March 15 and 16 which could weigh on precious metals in the short term, although this can be used as buying opportunity.

Industries that are likely to benefit from rising gold prices

Capital goods, home improvements, large-cap IT, and select financials are likely to outperform the market albeit with their share of volatility.

Companies whose business models highly rely on gold prices are the ones that could benefit the most from gold prices. As gold price surges, it allows gold loan companies to earn more through interest on gold loans which results in high revenue leading to an increase in net income.