Investing.com - Escalating tensions in eastern Ukraine fueled
safe-haven demand for gold on Thursday, offsetting upbeat U.S. data
that would have otherwise pushed the precious metal lower.
On the Comex division of the New York Mercantile Exchange, gold
futures for December delivery traded at 1,291.20 a troy ounce
during U.S. trading, up 0.61%, up from a session low of $1,283.20
and off a high of $1,297.40.
The December contract settled down 0.14% at $1,283.40 on
Futures were likely to find support at $1,273.40 a troy ounce,
the low from Aug. 21, and resistance at $1,304.90, the high from
A top Ukrainian military official was reported as saying earlier
that a "full-scale invasion" was taking place in the country, while
separate reports that up to 1,000 Russian troops were in Ukraine to
assist pro-Russian rebels boosted the price of gold, a popular
safe-haven asset class during times of geopolitical
The U.S. has repeatedly said Russia has been meddling in the
fighting in eastern Ukraine, a charge Moscow denies.
The U.N., meanwhile, was holding an emergency meeting to address
the crisis, which sent investors seeking safe harbor in the
precious metal despite upbeat U.S. data, which tends to send
falling by fueling expectations for tighter U.S. monetary
The U.S. gross domestic product grew at a revised annualized
rate of 4.2% in the second quarter of this year, according to the
Commerce Department, up from a preliminary estimate of 4.0% and
better than market forecasts for a downward revision to 3.9%.
The numbers firmed the dollar by cementing expectations that the
Federal Reserve will close its bond-buying program around October
and hike benchmark interest rates some time in 2015, possibly
sooner than once anticipated.
Gold and the dollar tend to trade inversely with one
Elsewhere, the U.S. Department of Labor said the number of
individuals filing for initial jobless benefits in the week ending
Aug. 22 declined by 1,000 to 298,000 from the previous week's
revised total of 299,000.
Analysts were expecting the figure to rise by 1,000 instead of
contract by that amount, which gave the greenback added
A separate report showed that U.S. pending home sales increased
by 3.3% last month, beating expectations for a 0.5% rise. June's
figure was revised to a 1.3% drop from a previously estimated
decline of 1.1%.
Meanwhile, silver for December delivery was up 0.72% at $19.615
a troy ounce, while copper futures for December delivery were down
1.54% at $3.149 a pound.
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