Gold rising amid growing tensions in Ukraine

Gold rising amid growing tensions in Ukraine  

 

 03.11.2014

Gold contused its upward movement during today trading session, as fears of an economic slowdown in China and Ukraine geopolitical crisis urged investors seeking safe-haven bullion. 

In fact, the investors’ confidence and refugee turn to the precious metal amid global uncertainties. Also traders expect the metal to remain in positive range trading ahead of the next big movement expected from the U.S. Federal Reserve's policy meeting next week. 

On the other hand, worries from China slowdown after the unexpected decrease in exports in February have affected the physical demand of the metal.

Gold hit 4 months high during the previous two weeks since the Ukraine crisis started. However the yellow metal gains were limited amid growing expectations that the Federal Reserve will continue to gradually reduce the pace of its asset purchasing program. There area signs of  US economic improvement , especially on last Friday, American employers added 175,000 jobs last month, higher than forecast of 149,000 jobs.

On the absence of US economic data and expectations about  weakening U.S. economic growth, in line with Russia’s intervention into Ukraine, today gold prices climbed above $1350 per ounce, to offset some of the downside pressures and losses during the last week. 

According to some analysts, Gold prices are expected to extend their recovery and even hit $1,400 per ounce later in the 2014 year.