Gold Holds Above $1,300 as U.S. Economy Assessed With Ukraine

Bullion for immediate delivery traded at $1,301.54 an ounce at 11:40 a.m. in Singapore from $1,302.53 yesterday, when prices reversed losses after Ukraine accused Russia of fueling terrorism in its eastern provinces. The metal is 1.3 percent lower this week, poised to snap a two-week advance, according to Bloomberg generic pricing.

While gold ended a 12-year bull run in 2013 on expectations the Federal Reserve would reduce stimulus as the world’s largest economy recovers, prices have rebounded 8.3 percent this year as unrest in Ukraine spurred haven demand. Data today may show a U.S. manufacturing gauge accelerated after a report yesterday showed U.S. industrial production beat economists’ estimates.

“As the U.S. economy continues to recover, gold will remain under pressure,” said Wang Xiaoli, chief investment strategist at CITICS Futures Co. in Shenzhen, a unit of China’s biggest listed brokerage. “The situation in Ukraine just means there will be buyers when prices dip below $1,300.”

Gold for June delivery traded at $1,301.60 an ounce on the Comex in New York from $1,303.50 yesterday. Holdings in the SPDR Gold Trust fell 1 percent yesterday, the most since Dec. 16, to 798.43 metric tons, the lowest since Feb. 21, data from the website showed.

Ukrainian troops pressed on with an anti-separatist offensive that freed an airfield in the eastern regions on April 15. Authorities sent armored vehicles into Donetsk, only to have some of them seized by pro-Russian activists.

Read More: www.bloomberg.com/news/2014-04-17/gold-holds-above-1-300-as-u-s-economy-assessed-with-ukraine.html