Gold climbed in New York, after reaching a 17-week high yesterday, on speculation that investor demand for haven assets will increase amid unrest in Ukraine.
Gold is heading for a second month of gains, the longest such run since August, as concern that the U.S. recovery may be faltering and unrest in emerging markets boosted demand for a store of value. Gunmen occupied Ukraine’s Crimea regional parliament and raised the Russian flag as lawmakers in the capital meet to approve a new cabinet after last week’s ouster of Viktor Yanukovych as leader.
“Heightened geopolitical risks as tensions in the Ukraine mount are supportive of gold,” James Steel, an analyst at HSBC Securities (USA) Inc., wrote in a note. “Should events in Ukraine deteriorate and involve neighboring countries, gold could benefit from increased safe-haven demand.”
Gold for April delivery added 0.3 percent to $1,332.50 an ounce on the Comex in New York by 8:30 a.m., after climbing to as much as $1,345.60 yesterday, the highest for a most-active contract since Oct. 30. Futures trading volumes were about the average for the past 100 days for this time of day, according to data compiled by Bloomberg. Gold for immediate delivery was little changed at $1,331 in London.
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