Investing.com - Gold prices jumped up on Wednesday on concerns
the Ukraine crisis continues to escalate and weaken the dollar
should the U.S. get more involved in the conflict, while upbeat
wholesale pricing data also boosted the yellow metal.
On the Comex division of the New York Mercantile Exchange, gold
futures for June delivery traded at 1,305.60 a troy ounce during
U.S. trading, up 0.83%, up from a session low of $1,291.70 and off
a high of $1,309.10.
The June contract settled down 0.08% at $1,294.80 on
Futures were likely to find support at $1,278.30 a troy ounce,
Monday's low, and resistance at $1,314.70, the high from May 7.
Russian Foreign Minister Sergei Lavrov said earlier that Ukraine
was "as close to civil war as you can get" and urged all sides to
find a solution, which sent
higher on fears skirmishes in the country will escalate.
The dollar often weakens as the Ukraine crisis heats up on
concerns that Washington will slap more and tougher sanctions on
Russia, which could slow recovery, as many U.S. businesses depend
on Europe for growth.
Gold and the dollar tend to trade inversely with one
Elsewhere, a rebounding euro took the steam out of the dollar,
which also supported gold.
Expectations for the European Central Bank to loosen policy next
month have largely been priced into trading, which gave the euro
room to rise and the dollar to stand down, often a recipe for
higher gold prices.
Reuters reported earlier that the ECB is preparing a "package of
measures" including cuts to all interest rates, with negative rates
on bank deposits to encourage lending to small and medium-sized
businesses to spur recovery.
A day earlier, the Wall Street Journal reported the German
central bank Bundesbank would back monetary easing measures,
including a negative rate on bank deposits and purchases of
packaged bank loans, if such tools were needed to keep persistently
low levels of inflation from becoming entrenched in the euro
Last week, ECB President Mario Draghi said monetary authorities
were "comfortable" with acting at its next meeting in June.
Meanwhile, silver for July delivery was up 1.23% at $19.788 a
troy ounce, while copper futures for July delivery were up 0.68% at
$3.157 a pound.
offers an extensive set of professional tools for the financial
Read more News on Investing.com and download the new
Investing.com Stocks & Forex App