Gold recovers as western leaders threaten further sanctions
Victoria Hewitt-Marsh, News Editor
25 Mar 2014, 10:35 a.m.
Gold rebounded overnight from a four week low as western governments increased the pressure on Russia by threatening further sanctions.
Western leaders also cancelled their upcoming G8 meeting in Sochi and instead plan to meet without Russia in June. Gold is up 9% this year as tensions escalated in the Ukraine and economic data from the U.S. indicated the world’s economy is slowing.
The political turmoil in the Ukraine has boosted gold’s appeal as a safe haven asset. Gavin Wendt, founder and senior analyst at Mine Life, expects this to continue. “I can’t see any other direction for gold other than going higher because this situation isn’t going to resolve itself anytime soon.”
Gold bullion for immediate delivery had traded as low as $1,308.06 yesterday before recovering overnight to end Asian trading at $1,316.86 per ounce.
Overnight, silver rose 0.5% to $20.04 per ounce, palladium decreased from $794.90 to $794.65 per ounce and platinum gained 0.2% to $1,431.72 per ounce.
Assets held by the world’s largest Gold ETF, the SPDR Gold Trust, increased by 0.6% yesterday to 821.47 metric tonnes, the highest level since December 2013.