Gold prices edged higher on Wednesday, as the conflict between pro-Russian separatists and Ukrainian forces continued to escalate, boosting demand for safe haven assets.
Prices held in a range between $1,291.70 and $1,301.70 an ounce. Gold eased down 0.08%, or $1.00, on Tuesday to settle at $1,294.80 an ounce.On the Comex division of the New York Mercantile Exchange, goldfor June delivery advanced 0.46%, or $5.90, to trade at $1,300.70 a troy ounce, during European morning hours.
Gold prices were likely to find support at $1,277.70 an ounce, the low from May 12 and resistance at $1,315.00, the high from May 7.
Also on the Comex, silver for July delivery rallied 1.01%, or 19.8 cents, to trade at $19.74 a troy ounce.
Investors remained cautious after seven Ukrainian soldiers were killed and seven wounded in an ambush by pro-Russian separatists in eastern Ukraine on Tuesday, stoking fears that the crisis will further escalate and drag the U.S. deeper into the standoff.
Gold, seen as a safe haven investment, usually benefits from geopolitical turmoil.
Meanwhile, market players looked ahead to the release of U.S. data on producer price inflation due later in the session for further indications on the strength of the economy and the need for stimulus.
Data released Tuesday showed that U.S. retail sales inched up by just 0.1% last month, missing expectations for a 0.4% increase.
Elsewhere in metals trading, copper for July delivery inched up 0.42%, or 1.3 cents, to trade at $3.149 a pound amid speculation demand from top consumer China will increase in the near-term.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
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