Gold Rises After Safe Haven Boost Waiting for US Data To Confirm

Gold traded above the lowest price in more than a week in New York as investors weighed turmoil over Ukraine against the outlook for an improving U.S. economy.

Gold fell 2 percent yesterday, the most since December, as data indicated U.S. consumer prices accelerated in March. A report released this week showed retail sales increased more in March than economists forecast. The metal slid the most since 1981 last year on the outlook for reduced U.S. stimulus.

Federal Reserve Chair Janet Yellen will address the Economic Club of New York today. She said in March borrowing costs may start to rise “around six months” after the conclusion of asset buying, which economists forecast will end this year. Since then, minutes of the Fed’s last meeting played down forecasts for higher interest rates. Gold rebounded 8.4 percent this year as the Ukraine crisis spurred haven demand.

via Bloomberg

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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