Gold Trades Below Three-Week High on U.S. Economic Data, Unrest Gold traded little changed below a three-week high as investors gauged the health of the U.S. economy and tensions persisted in Ukraine and the Middle East. Gold for immediate delivery traded at $1,312.24 an ounce at 8:37 a.m. in Singapore from $1,312.92 yesterday, according to Bloomberg generic pricing. The metal on Aug. 8 climbed to $1,322.76, the highest level since July 18, as the U.S. began air strikes against Islamic militants in Iraq. Bullion advanced 9.2 percent this year as mixed economic data signaled an uneven U.S. recovery, while unrest in Ukraine, Gaza and Iraq spurred haven demand. Retail sales data yesterday that missed estimates fueled bets that the Federal Reserve will join other global policy makers in keeping borrowing costs low for longer. The euro traded near a nine-month low against the dollar before data that’s forecast to show Germany’s economy contracted in the second quarter. “Gold continues to trade in range as a stalemate exists between the global macroeconomy and geopolitical risks,” Xia Yingying, an analyst at Nanhua Futures Co., said from Hangzhou, China. “The direction remains largely data-driven, and while haven demand is fading, the uncertainty is still supportive.” Ukraine said it may accept humanitarian aid from Russia if the Red Cross distributed it in the nation’s war-torn eastern regions, while Israel and Gaza Strip militants agreed to extend a truce for five days. Monetary Policies In China, the world’s largest gold user, the central bank may expand stimulus after data showed new credit unexpectedly plunged. The Bank of England said it won’t rush to raise interest rates amid a lack of wage increases, while the European Central Bank may act to support faltering growth in the region. Gold for December delivery traded at $1,313.60 an ounce on the Comex in New York from $1,314.50 yesterday, when prices advanced 0.3 percent, the most in almost a week. Silver for immediate delivery traded at $19.8620 an ounce from $19.8298 yesterday. Spot platinum traded at $1,468.50 an ounce from $1,468.63, while palladium was little changed at $880.73 an ounce.
Posted on: Thu, 14 Aug 2014 10:12:22 +0000
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