Gold futures were seen advancing on Thursday, rising for a third day during the European trading session after falling to $1,279.00 earlier in the week. Meanwhile, the tension in Ukraine continues before the release of key European and US data.
Gold for immediate delivery increased 0.5% higher to $1,289.05 an ounce, according to Bloomberg generic pricing. The yellow metal fell to $1,273.14 on August 21, the lowest since June 18. Meanwhile silver for immediate delivery gained 0.9% to $19.6318 an ounce.
Economic Data
A string of economic reports are expected to be release later in the day, which includes the final estimate of the US gross domestic product (GDP) for the second-quarter, with forecasts of a slight drop from the previous level of 4.0% to 3.9%.
Germany will be posting CPI and unemployment figures for August which could boost gold prices higher.
On Friday, the US and Europe will be releasing reports such as the European Union CPI, unemployment figures and US personal consumption deflator which represents price growth for personal consumption goods.
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Ukraine
The ongoing tensions in Ukraine is expected to boost gold prices higher as US said Russia could be directing a counteroffensive by pro-Russian rebels in Ukraine. According to Jen Psaki, the US State Department spokeswoman, the violence in the eastern region of Ukraine is spreading to the previously peaceful areas.
Meanwhile, ten Russian soldiers who were recently captured on the Ukrainian boarder were said to have crossed over into the territory ‘by accident,’ according to Russian military sources.
“These are not steps you take when you are operating in a transparent manner,” said State Department spokeswoman Jen Psaki.
“We are also concerned about the Russian government’s unwillingness to tell the truth even as its soldiers are found 30 miles inside Ukraine” she added.
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