Gold futures prices was little changed near a 1-week high in London ahead of a firmer dollar offset concerns that tensions between Russia and the West over Ukraine could escalate.Gold futures prices was little changed near a 1-week high in London as a firmer dollar offset concerns that tensions between Russia and the West over Ukraine could escalate.
An accumulation of Russian forces along the border with Ukraine and tit-for-tat financial penalties between the Western and Moscow on Wednesday led investors by assets considered as higher risk such as stocks and the relative safety of bonds and gold.
European stocks, which had drastically fallen, showed signs of leveling off on Thursday, while the dollar index rose 0.1 percent. Gold, which is priced in dollars, tends lost ground when companies American units.
Gold rallied yesterday even as the dollar hit a nine-month low versus the euro on signs the USA is recovering, while Europe’s economy falters. The Fed is on track to end the quantitative easing program you use to add money to the bank this year. Bullion slid 28 percent last year on expectations of reduced stimulus.
On the Comex Exchange, gold for December delivery futures dropped 0.19%, or $ 2.50, to trade at $ 1305.70 a troy ounce during European morning hours. It reached $1,309.52 yesterday, the highest since July 29. Gold for December delivery declined 0.1 percent to $1,306.30 on the Comex.
Spot gold was down 0.2 per cent at $1,302.20 an ounce at 093.
“The prices of gold futures are likely to remain ragged and range-bound,” said 100McxTips Commodity analysts at UBS. “The persistent geopolitical risks impede short action. But no strong incentive to aggressively seek longs for Gold, either,” they said.
Russian stocks and the ruble fallen after President Vladimir Putin signed an executive order on Wednesday to stop or restrict imports of agricultural products originating from countries which have imposed sanctions on Russia for the crisis in Ukraine.
In retaliation against Western penalties for support for the rebels in Ukraine, said Moscow on Wednesday that going to ban all food imports of all fruit and vegetable shipments from Europe and the United States.
The extent follows a NATO statement on Wednesday, saying that Russia amassed about 20,000 troops along its border of Ukraine and could use the pretext of a humanitarian mission or peacekeeping to invade.
Market participants looked ahead to the monetary policy meeting held of the European Central Bank later in the day, amid signs that the crisis in Ukraine was hurting Germany, the largest economy in Europe.