Gold rebounds from one-month low on renewed worries from Ukraine crisis Precious-Gold rebounded from one-month low as warns from the U.S. and its allies to Russia provided some haven demand on the metal. Eyes has come back again to the Ukraine crisis after yesterday’s G-7 meeting which signaled the seriousness of members to impose strong sanctions on Russia after its annexation to Crimea. “We remain ready to intensify actions, including coordinated sectoral sanctions,” the G-7 said in a statement. The also mentioned they will not attend the coming G-8 meeting while will form another summit in June in Brussels. However, the focus may not remain for a long time on the Ukraine crisis as last week’s Fed meeting proved to be more important for investors. Fed officials said they predict a hike in borrowing cost to at least 1 percent at the end of 2015, higher than previously expected. Fed Chairman Janet Yellen said interest rates may rise in six months after the end of the bond purchases withdrawal. The shiny metal lost 3.48 percent the previous week, to resume its fall from six-month high. Later in the day, the U.S. will release important housing and confidence data that will give an update about the health of the economy in the first quarter. Meanwhile, gold is trading around $1314.41 an ounce after hitting a high of $1316.45 and a low of $1307.89. The U.S. dollar gained more than 1 percent last week against a basket of major currencies, where it is currently hovering around 80.09 after opening at 80.08, according to the dollar index. Crude oil for May’s delivery was little changed trading near the session’s opening at $99.37 a barrel. On the physical side, demand from the world’s biggest bullion buyer China remained subdued amid the recent depreciation in the yuan and signs of slowdown in economic growth. A report released on Monday showed that China’s flash PMI manufacturing dipped to an eight-month low of 48.1 in March from 48.5 the previous month, coming below analysts’ forecast of 48.7.
Posted on: Tue, 25 Mar 2014 08:02:49 +0000
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