Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Gold rises to 3-week high on Ukraine violence

Published 05/05/2014, 03:17 AM
Updated 05/05/2014, 03:17 AM
Gold boosted by Ukraine tensions

Gold boosted by Ukraine tensions

Investing.com - Gold prices rose to a three-week high on Monday, as worries about escalating violence in Ukraine bolstered investor demand for the haven asset.

On the Comex division of the New York Mercantile Exchange, gold for June delivery rose to a daily high of $1,309.40 a troy ounce, the most since April 15.

Gold last traded at $1,308.20 an ounce during European morning hours, up 0.42%, or $5.50. Futures rallied 1.52%, or $19.50 an ounce on Friday to settle at $1,302.90.

Gold prices were likely to find support at $1,272.00 an ounce, the low from May 2 and resistance at $1,326.90, the high from April 15.

Investors continued to monitor events in Ukraine, as hostilities between Kiev and Russia remain high.

Clashes between Ukraine's army and pro-Russian forces broke out in six cities in eastern Ukraine over the weekend, stoking fears that the crisis will develop and drag the U.S. deeper into the standoff.

U.S. Secretary of State John Kerry threatened Russia with further sanctions on Sunday, unless the country stopped backing separatists in eastern Ukraine.

The West is accusing Russia of leading a separatist revolt in eastern Ukraine after it annexed Crimea last month.

Gold, seen as a safe haven investment, usually benefits from geopolitical turmoil.

Meanwhile, market players continued to assess a report showing that the U.S. economy added jobs at the fastest pace in more than two years in April, but also showed weaker earnings growth and a drop in labor force participation.

The Labor Department reported Friday that the U.S. economy added 288,000 jobs in April, well above expectations for jobs growth of 210,000. The U.S. unemployment rate dropped to a five-and-a-half year low of 6.3%, compared to expectations for 6.6%.

But optimism was tempered after the report also showed that the labor force participation rate, which measures the proportion of people either working or looking for work, fell to 62.8% from 63.2% in March. Meanwhile, average wage growth edged lower in April from the same month a year earlier, dampening the medium term inflation outlook.

Also on the Comex, silver for July delivery inched up 0.13%, or 2.6 cents, to trade at $19.57 a troy ounce. Silver ended Friday’s session up 2.64%, or 50.3 cents, to settle at $19.54 an ounce.

Elsewhere in metals trading, copper for July delivery shed 0.32%, or 1.0 cent, to trade at $3.060 a pound.

Data released earlier showed that China’s final HSBC Purchasing Managers Index ticked down to 48.1 in April from a preliminary reading of 48.3 and below expectations for a reading of 48.4.

The report indicated that China’s manufacturing sector contracted for the fourth consecutive month in April, underlining concerns that an economic slowdown in the world’s second-largest economy is deepening

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.