News Column

Gold Holds Below USD1,300 Despite Safe Haven Appeal

August 6, 2014

WASHINGTON (Alliance News) - Gold prices are up slightly Wednesday morning, with weak global equity markets prompting investors to seek the safe haven of the precious metal.

Lingering concerns about the situation in Ukraine and the Middle East are also contributing to gold's rise.

According to reports, tensions in Ukraine may escalate with Russia positioning its troops along the east Ukrainian border.

Gold futures for December are up USD5.20 or 0.40% at USD1,290.50 an ounce.

On Tuesday, gold futures ended down USD3.70 or 0.3% at USD1,284.00 an ounce with recent US economic data raising prospects of a Fed rate hike sometime sooner than expected.

Silver for September is down USD0.011 or 0.06% at USD19.822 an ounce.

Meanwhile, copper is down USD0.034 or 1.07% at USD3.170 per pound, with recent economic data from China indicating a likely fall in demand.

The US Commerce Department is scheduled to release its trade balance report for June at 8:30 am ET. Economists expect the trade deficit to widen to USD45 billion from USD44.4 billion in May.

Traders are also gearing up for Thursday's policy statement from the European Central Bank, looking for indication about further stimulus to revive the sagging eurozone economy.

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Source: Alliance News

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