Gold prices were seen trading higher on Tuesday, heading for a four-month high as tensions between Russia and Ukraine and the weak Chinese export data stimulated demand for a haven.
Gold prices for immediate delivery climbed 0.47% higher to $1,347.60 an ounce at the time of writing, while silver futures added 0.40% to $21.00 an ounce.
Holdings in the world’s largest bullion gold-backed exchange-traded fund, SPDR Gold Trust, rose 7.50 tons to 812.70 tons on Monday, the biggest inflow since Feb 13.
Gold – Ukraine
The ongoing conflict between Russia and Ukraine over the Crimean region continues as the Ukrainian Prime Minister Arseniy Yatsenyuk prepares to meets the US President Barack Obama and western nations to discuss further repercussions if Russia failed to ease tensions.
On Tuesday, Ukraine’s Interior Minister Arsen Avakov said Ukraine could send up to 20,000 troops to protect the country’s borders.
Leaders from the western nations, Europe and the US have threatened Russia with sanctions for sending troops into Ukraine’s Crimea region, while Russia has declared to protect the Russian citizens in the region.
Gold – China Trade Balance
Exports from the world’s second biggest economy, China; came in lower in February, dropping 18.1% year-on-year, compared to the rise of 10.6% seen in the previous month. China’s imports grew by 10.1% in February, picking up slightly from the previous figures of 10% in December.
The official report showed that the excess of imports over exports came in at $23.0 billion in February, coming in lower than the surplus of $31.6 billion seen in the previous month and analysts estimates of a $12.4 billion surplus.
Gold – Federal Reserve
The market are focused on the Federal Reserve’s next monthly policy meeting scheduled for March 18-19, with predictions that the central bank would trim another $10 billion cut to its bond buying program.
The Federal Reserve announced a $10 billion reduction to its bond purchases at each of its two meeting, currently leaving the purchases at $65 billion.
Visit www.hymarkets.com to find out more about our products and start trading today with only $50 using the latest trading technology today
The post Gold Prices Climbs as Tension in Ukraine Supports Haven Demand appeared first on | HY Markets Official blog.
Article provided by HY Markets Forex Blog
