Gold Rises on Crimea Awaits Sanctions

Gold traded near the highest level in more than six months in New York as investors waited for decisions on possible sanctions against Russia after Crimea’s disputed vote on breaking with Ukraine.

The U.S. and the European Union warned the government in Moscow not to annex Crimea after a referendum in the southern Ukrainian region backed joining Russia. Exchange-traded products backed by gold rose 0.7 percent last week, the biggest weekly gain since October 2012, data compiled by Bloomberg show.

“There is no sign whatsoever of market players panicking after the weekend’s Crimean referendum,” Commerzbank AG analysts Eugen Weinberg and Daniel Briesemann wrote in a report. “They are clearly waiting to see how the EU and the U.S. will react. If further-reaching sanctions were to be imposed, gold would doubtless remain attractive as a safe haven.”

Gold for April delivery fell 0.1 percent to $1,377.50 an ounce by 9:13 a.m. on the Comex in New York. The precious metal earlier today rose to $1,392.60, the highest since Sept. 9. Futures trading volumes were about average for the past 100 days for this time of day, according to data compiled by Bloomberg. Bullion for immediate delivery slid 0.3 percent to $1,378.30 an ounce in London.

via Bloomberg

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