Gold spike ends as Russian troops return to base

Gold prices fell nearly one per cent in the early trading sessions of today (March 4th) as equities rebounded following Russia's decision to return troops stationed on the borders of Ukraine to their base.

The tensions had resulted in a four-month high for the precious metal in commodity trading yesterday as investors sought safe-haven assets following Vladimir Putin's military intervention in Russia's crisis-hit neighbour and the subsequent diplomatic ripostes from the US.

On the markets, this meant that cash gold fell by $13.75 an ounce to $1,336.54 after previously pushing up two per cent to hit $1,354.80, which was the highest price since late October.

Most traders saw the spike as a good selling opportunity.

Dealers believe the commodity will need help from the physical market if it is to stay above the key $1,350 an ounce barrier, after rising more than 11 per cent already this year.