News Column

Weekly Round-Up: Ukraine Plane Crash Sends Gold, Silver Soaring, Gains Short-Lived

July 18, 2014

Staff Writer


Thursday’s plane crash in Ukraine rocked the precious metals market, sending prices climbing fast. Gains, however, were cut short with investors unconvinced of the lingering impact on the market.

“There was a spike higher in precious metals yesterday but investors do not expect a lasting impact from the situation in Ukraine,” Quantitative Commodity Research director Peter Fertig said, Reuters reported.

Gold futures for August were down by 0.7 percent on Friday, ending the week on a down note.  This will close its seven-week rising streak. Reuters attributed gold’s decline to fears the U.S. will raise its interest rates - in addition to the plane crash in Ukraine. Spot gold decreased by just under a percent to $1,306.30 an ounce, according to Reuters.

“We may still see gold remaining above $1,300 today but the strong selling seen at the start of the week indicates there is some pressure from market participants to liquidate the metal and push prices lower,” Fertig said.

Spot silverfell by $0.12 to $20.94 an ounce, Reuters reported. Silver futures for August delivery fell by $0.16 to $20.94, according to CME Group.

On the base metals side, copper saw some weakness again at week’s end, amid concerns that China’s demand for copper will lag in the near future for its property sector. Additionally, copper production is set to increase, according to Reuters. There is still a surplus in the second half of the year. Copper futures for August delivery on the Comex fell by $0.04 to reach $3.17 an ounce, CME Group reported.

Reuters reported that copper on the London Metal exchange fell by $42.15 to reach $7,025 a tonne.

Meanwhile, brent cruderose by 72 cents to reach $107.89. Prices are fluctuating because of the shifting situation in Russia and Ukraine, along with tensions in the Middle East. However, it is moving downward after investors have begun to believe that rebel militants will not have as major an impact on Iraqi oil production as anticipated.

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Source: Investing News Network

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