Gold Drops Sharply to $1335 as Ukraine Tensions Ease

Gold futures fell from a 17-week high as demand for a haven eased after Russian President Vladimir Putin said that there’s no immediate need to send troops to Ukraine. Palladium jumped.

In his first public remarks since Russian forces increased in the Crimean peninsula in southern Ukraine, Putin reserved the right to use force to protect ethnic Russians. Gold rose as much as 2.5 percent yesterday as tensions escalated. U.S. Secretary of State John Kerry arrived in Kiev to present a financial-aid package to the interim government.

This year, gold has gained 11 percent partly amid signs of a faltering global economy. In 2013, the price plunged 28 percent, the most since 1981, as U.S. equities surged to a record. Federal Reserve Chair Janet Yellen said last week the central bank is “open to reconsidering” the pace of cuts in monetary stimulus should growth weaken.

Bloomberg

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