Investing.com - Gold prices edged up in U.S. trading on Monday
after Ukrainian separatists over the weekend voted in favor of self
rule, which bolstered the yellow metal's safe-haven appeal.
On the Comex division of the New York Mercantile Exchange, gold
futures for June delivery traded at 1,296.30 a troy ounce during
U.S. trading, up 0.68%, up from a session low of $1,278.30 and off
a high of $1,303.90.
The June contract settled down 0.01% at $1,287.60 on Friday.
Futures were likely to find support at $1,278.30 a troy ounce,
the session low, and resistance at $1,314.70, last Wednesday's
Pro-Russian separatists claimed victory in a weekend referendum
on self rule in the eastern Ukrainian city of Donetsk, which
stirred concerns that the country is sliding closer to civil
The vote has been condemned by Ukraine's government and the
West, which has threatened to hit Russia with fresh sanctions.
Elsewhere, a rebounding euro weakened demand for the dollar,
which also supported gold, as the greenback and the yellow metal
tend to trade inversely with one another.
Last week, the European Central Bank left interest rates
unchanged at 0.25%, though the euro dropped after ECB President
Mario Draghi said the bank's governing council would feel
comfortable with acting at its next meeting in June.
By Monday, the single currency found support, which gave gold
room to climb.
On Monday, ECB Vice President Vitor Constancio said medium-term
inflation outlook will take high priority when monetary authorities
consider implementing fresh policy measures.
He said the ECB was considering a wide range of policy options
but stopped short of indicating what the bank may decide.
He stressed the ECB won't ignore the euro's strength but added
that the exchange rate is not a policy target.
Elsewhere Monday, International Monetary Fund head Christine
Lagarde renewed calls for more stimulus from the ECB, warning that
persistently low inflation rates posed a serious threat to the
Meanwhile, silver for July delivery was up 2.34% at $19.568 a
troy ounce, while copper futures for July delivery were up 2.09% at
$3.148 a pound.
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