Gold near six month high as tensions mount in the Ukraine
Victoria Hewitt-Marsh, News Editor
17 Mar 2014, 10:51 a.m.
Gold was trading close to its six month high as tensions escalate following yesterday’s vote by the Crimean people to reject the Ukraine and join Russia.
The political events in the Ukraine is providing support to the gold price as traders move from risk assets such as equities into safe haven assets such as gold. Gold bullion has gained 15% this year as tensions between the West and Russia escalate, with many analysts expecting gold to break through $1,500 within the next couple of weeks.
The vote was unanimous with 96% in favour of leaving the Ukraine and joining Russia. The West have been quick to declare the vote illegal and many now expect the U.S and Europe to announce sanctions on Russia later this week.
Holdings in the world’s largest exchange traded fund, SPDR, expanded by 3.29 tonnes to 816.59 tonnes on Friday.