22nd April 2014
Had the Ukraine crisis happened any time in the past five years or so, gold trading would be white hot with investors clamouring for the safe haven, but with regional economies getting back on track, there’s currently less desire to hit the panic button.
Continuing tensions in the east of Ukraine left three people dead over the weekend, as pro-Russian rebels retained control over a number of governmental buildings in the region. Despite this though, the gold price actually hit a two-week low on Monday, as safe haven demand was outweighed by US data.
The Conference Board’s index of leading indicators suggested that future economic activity reached 0.8 per cent in March, compared to the estimate of 0.7 per cent and February’s 0.5 per cent reading. Encouraging numbers like that are likely to keep the Fed’s tapering programme on course, further cooling safe haven demand.
However, gold trading can be a fickle mistress and a downturn in data from America, China or Europe, or an escalation in hostilities in the east of Ukraine could persuade investors to put their money back into the precious metal. At 0700 GMT, the gold price sat at $1,290 an ounce.
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