Gold the Doomsday hedge is stirring. Dramatically oversold in light of a Cold War part 2 and the invasion of Ukraine by Russia. Is there a major Russian offensive looming: end of 2022?

Gold the doomsday hedge has been severely oversold on the back of U.S. Dollar strength and investors chasing higher yields, yet gold remains as the ultimate risk averse asset to hold, when everything goes to chaos.  The dramatic decline in the gold price does indicate that the markets are mispricing risk, when the backstop to speculation, The Federal Reserve, is now tightening interest rates in a vain effort to bring down energy prices.   Russia may have the last laugh by tightening gas exports or cutting off supplies to Europe altogether despite the bans on Russian oil in place,  most EU countries will have it implemented by the end of 2022.  In the meantime natural gas prices, with its correlation to electricity prices, will push the oil price higher.   This is essentially economic warfare.

But the ongoing Russian/Ukrainian war may also affect the gold price as it did in early 2022, when the media starting using the term ''cold war"  amidst the worst inflation in 40 years.  Is Russia going to expand its military operations in Ukraine for after August 2022?  As the West, more so Germany, who are sending to Ukraine advanced anti-aircraft tanks in late July, the U.S. has been suppling Ukraine with advanced mobile missile systems. And the U.K. will be allowing Ukrainian forces to use their long range mobile missile system.