News Column

Gold Trending Higher On Safe Haven Appeal

August 28, 2014



WASHINGTON (Alliance News) - Gold futures trended higher Thursday morning, on its safe haven appeal while tracking declining US and European markets, with focus on the deteriorating situation in Ukraine.

Gold futures for December delivery are up USD1.30 or 0.1% at USD1,286.50 an ounce.

On Wednesday, gold futures shed USD1.80 or 0.1% to close at USD1,283.40 an ounce, with little economic cues for direction.

Economic reports out of the US revealed the US economy to have expanded faster during the second quarter than previously estimated. Revised figures from the US Commerce Department showed Gross Domestic Product, a broad measure of economic activity, rose by 4.2% in the April-to-June period.

Meanwhile, Ukraine turmoil continued to escalate after President Petro Poroshenko on Thursday alleged Russian troops had been sent into his country and called for an urgent meeting of the United Nations Security Council and the European Council to discuss the issue.

Silver for December is up USD0.145 or 0.7% at USD19.615 an ounce, while copper is down USD0.047 or 1.5% at USD3.152 per pound.

In economic news, pending home sales in the US rebounded in July due mainly on low interest rates and confidence in the US economic recovery, according to the National Association of Realtors. The Pending Home Sales Index climbed 3.3% to 105.9 in July from 102.5 in June.

In economic news from the eurozone, eurozone economic confidence weakened more-than-expected in August to its lowest level in eight months, underscoring rising pessimism amid heightened geopolitical tensions and stagnating economic recovery. The index dropped to 100.6 in August, the lowest score since December, from 102.1 in July, the European Commission said Thursday.

Meanwhile, Germany's inflation in August held steady at its lowest level in four-and-a-half years, preliminary figures from the statistical office Destatis showed Thursday. The consumer price index rose 0.8% year-on-year, same as in July and in line with economists' expectations. The figure was the lowest since February 2010.



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Source: Alliance News


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