Gold prices were seen trading higher on Tuesday, rising to its highest prices in almost three weeks as traders keep an eye on the escalated tensions in Ukraine.
Prices for the yellow metal climbed on Monday, lifted by the increased demand for the metal on Monday over the tensions in Ukraine which escalated over the weekend and the key Chinese manufacturing gauge contracted for the fourth month in a row, raising concerns that the world’s second largest economy’s slowdown is deepening.
Futures for Gold for June delivery climbed 0.1% to $1,310.80 on the Comex in New York at the time of writing, after reaching $1,315.68 yesterday, the highest since April 15. While silver for immediate delivery traded 0.2% higher to $19.6465 an ounce in London.
Gold have climbed by 9.1% this year, bouncing back from its biggest drop in a year since 1981.
Gold – Ukraine
Over the weekend, the crises in Ukraine escalated, as Ukraine’s Interior Ministry forces were sent to drive out militants and release hostages, according to Minister Arsen Avakov. The crises in Odessa left 46 dead.
Meanwhile the German Chancellor Angela Merkel and US President Barack Obama have set May 25 to vote on whether to impose more sanctions against Russia if the country fails to withdraw its support for separatists.
The global demand for gold is currently the highest in China, taking over India as the world largest consumer. However, the weakening of the yuan against the greenback has cut the demand from China as the consumer purchasing power from the nation dropped.
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