Investing.com - Gold prices rose on Wednesday on safe-haven
demand amid concerns the Russia-Ukraine conflict is set to
escalate, though a positive jobless claims report in the U.S.
On the Comex division of the New York Mercantile Exchange, gold
futures for December delivery traded at 1,312.40 a troy ounce
during U.S. trading, up 0.32%, up from a session low of $1,303.40
and off a high of $1,314.80.
The December contract settled up 1.78% at $1,308.20 on
Futures were likely to find support at $1,283.30 a troy ounce,
Tuesday's low, and resistance at $1,320.40, the high from July
Investors flocked to gold on Wednesday on fears the conflict in
Ukraine is set to escalate.
Reports that Russia has amassed more troops near its border with
Ukraine have bolstered
due to the safe-haven appeal the yellow metal enjoys during times
of geopolitical uncertainty.
Since the West slapped sanctions on for allegedly meddling in
Ukraine's affairs by supporting separatists, Russian troops along
the border have reportedly jumped to 20,000 from 8,000.
Still, upbeat jobless claims data in the U.S. capped the
precious metal's advance.
The U.S. Department of Labor reported earlier that the number of
individuals filing for initial jobless benefits in the week ending
Aug. 2 fell by 14,000 to 289,000 from the previous week's total of
Analysts had expected jobless claims to rise by 2,000 to 305,000
last week, and the numbers confirmed market expectations for the
Federal Reserve to close its monthly bond-buying stimulus program
in October and begin hiking interest rates afterwards in 2015.
Loose monetary policies such as Fed asset purchases bolster gold
by suppressing long-term interest rates, which weakens the dollar,
gold's traditional hedge.
Talk of tighter policy tends to weaken gold by giving the dollar
Meanwhile, silver for September delivery was down 0.33% at
$19.958 a troy ounce, while copper futures for September delivery
were up 0.21% at $3.173 a pound.
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