Gold News – gold underpinned by ongoing geopolitical uncertainty
Gold prices remained steady this month underpinned by tensions in the Ukraine and concerns over the recovery of the eurozone. Despite positive U.S. Fed data, yesterday’s escalating tension in eastern Ukraine have fueled gold’s appeal, a popular safe-have asset during times of geopolitical uncertainty and instability.
President Obama will attend an emergency meeting next week to discuss the crisis with other European leaders and Nato officials amid western accusations of direct Russian involvement, a charge the Kremlin denies. This comes after Angela Merkel informed Putin that reports of an incursion will need to be justified.
Ewald Nowotny, European Central Bank policymaker, has expressed concern over the recovery of the euro-zone, specifically highlighting inflation and unemployment as major recovery stumbling blocks as the 2014 upturn proves to be much weaker than first expected.
In addition central banks have continued to buy gold at a steady rate in the second quarter of 2014 having bought over 117 tonnes of gold, a jump of 28% over the same period in 2013.
Gold rises as tension builds in the Ukraine
The gold price rose yesterday as tension builds between Russia and the Ukraine over the apparent deployment of Russian troops in the east of the Ukraine.
The gold price rose over 1% at one point after Ukrainian President said Russian soldiers has entered the East of his country. NATO also announced they had evidence that over 1,000 Russian soldiers had illegally entered Ukrainian territory. The U.S. government also accused Russia of supplying military hardware to the rebels. Russia strongly denies all the claims.
Gold responded positively to the news as equity markets in Europe fell and dollar softened against a basket of major currencies.
Gold is currently trading at £775.75 per ounce, silver £11.75 per ounce, platinum £859.26 per ounce and palladium £539.41 per ounce.
Gold rises for the third day as tension continues in the Ukraine
The gold price has risen for the third consecutive day as tensions increased in the Ukraine and U.S. dollar softened. Gold bullion increased 0.5% during Asian trading to reach $1,289.05 per ounce.
Jen Psaki, U.S. State Department spokeswomen, said Russia may be supporting Ukrainian rebels in the east of the country. The U.S. believes this support may have enabled the rebels to open a new front in previously peaceful areas in the south east of the country.
The U.S. dollar fell 0.1% against a basket of major currencies which in turn boosted gold’s appeal. Historically gold outperforms traditional assets in times of economic and political uncertainty.
Gold is currently trading at £776.90 per ounce, silver £11.93 per ounce, platinum £859.27 per ounce and palladium £540.78 per ounce.
Get the rest of the August news from Bullion By Post http://www.bullionbypost.co.uk/gold-news/?utm_source=E-MAIL+LIST+ALL&utm_campaign=2409a4f763-Stocktake_Clearance_Ends_Soon_290814&utm_medium=email&utm_term=0_4601d1f15b-2409a4f763-21024929&ct=t(Stocktake_Clearance_Ends_Soon_290814)