Gold Rises on Ukraine Turmoil Driving Safe Haven Demand

Gold climbed toward a four-month high in New York as the standoff between Russia and Ukraine spurred demand for a haven. Silver advanced.

Ukraine began military drills as Russian forces tightened their hold on the Crimean peninsula, where residents will have the choice of joining Russia in a March 16 referendum. Ukraine’s prime minister prepared to meet U.S. President Barack Obama and western nations threatened further repercussions if Russia failed to defuse tensions.

Bullion advanced 12 percent this year, rebounding from the biggest annual drop since 1981, even as the Federal Reserve announced a $10 billion reduction to bond buying at each of its past two meetings, leaving purchases at $65 billion. Fed Chair Janet Yellen said last month the central bank will probably maintain its strategy of trimming the stimulus program. Global equities are within 1 percent of a six-year high set last week.

via Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza