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Gold prices gain in Asia with support from Ukraine tensions

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Investing.com -

Investing.com - Gold prices gained in Asia on Tuesday, supported by events in the Ukraine in thin trade with markets in Singapore, Vietnam, Thailand, Cambodia, Laos, Malaysia, Myanmar and Indonesia shut for Vesak Day.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at $1,297.80 a troy ounce, up 0.15%, after hitting an overnight session low of $1,278.30 and off a high of $1,303.90.

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 war.

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 European recovery.

Silver for July delivery rose 0.23% at $19.587 a troy ounce. Copper futures for July delivery gained 0.25% at $3.152 a pound.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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