Gold up as dollar weakens and tensions remain in the Ukraine
Victoria Hewitt-Marsh, News Editor
7 May 2014, 10:17 a.m.
Gold rose 0.2% overnight, helped by a weak dollar and continued tension in the Ukraine. Violence broke out in the eastern town of Mariupol yesterday, where a spokesman for the Pro-Russian fighters confirmed one person was killed a number seriously injured. The gold price may be boosted further if the West, led by the U.S., implements further sanctions against Russia.
According to Peter Fung head of dealing at Wing Fung Precious Metals, "The price trend is not very clear but because of the increased tensions in Ukraine, gold prices are supported, it could fall back as the situation eases."
The gold price was also supported by a weaker dollar, which is currently trading at a six month low against a basket of major currencies. A weaker dollar makes gold cheaper for holders of other currencies.