Gold prices traded higher on the last day of the trading week, climbing to its highest in six months as the tension in Ukraine escalates, while Crimea prepares to vote on March 16 on splitting from Ukraine and joining Russia.
The yellow metal for immediate delivery climbed 0.5% higher to $1,376.64 an ounce, the highest level in six-months. The bullion is trading towards its sixth-weekly high, the longest since August 2011.While silver gained 0.2% to $21.2241 an ounce.
Gold have gained 14% on demand for a haven as the tension in Ukraine continues to weigh on the market which have already been weaken by the US central bank’s cuts.
In China, growth in the world largest consumer slowed down, while data released earlier in the week showed that China’s retail sales and industrial output came in lower than expected.
Gold – Fed Meeting
The upcoming fed meeting is in focus as members of the Federal Reserve would gather for its next meeting scheduled for March 18-19. The Fed has announced a $10 billion reduction from its $85 billion monthly bond purchase at each of its past two meeting, currently leaving purchase at $65 billion.
Holdings at the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust; came in at 813.3 metric tons on Thursday, the highest since December 20.
Gold – Crimea Referendum
As the crisis in Ukraine escalates, the country’s region Crimea will vote in a referendum on Sunday over splitting from Ukraine and joining Russia. The Western nations have warned that the ballot and annexation of Crimea is a violation of international law.
Ukraine’s Prime Minister spoke in front of the United Nations, requesting Russia for talks to put an end to the crisis between the two countries.
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