Gold trades sideways as safe haven demand provides support
Adam Pike, News Editor
12 May 2014, 10:20 a.m.
The gold price recovered slightly during Asian trading as escalating political turmoil in the east of Ukraine boosted gold appeal as the ultimate safe haven asset. The gold spot price increased $2 to $1,289.60 per ounce.
Over the weekend pro-Russian activists declared a resounding victory in a referendum for self-rule. Edward Meir, gold analyst at INTL FCStone, said traders are being increasingly complacent about the ongoing crisis in the Ukraine, perhaps figuring that the worst case scenarios were not materializing. The more the crisis remains localized, the more pressure there will be on gold prices going forward."
Sentiment towards gold was dented on Friday after data showed that Indian gold imports fell 74% in April to $1.75 billion when compared to a year earlier as a result of the gold import tax.