Gold rose from a 10-week low in New York, climbing for the first time in four sessions, as the crisis in Ukraine spurred demand for a haven.
Bullion futures reached $1,275.80 an ounce yesterday, the lowest since Feb. 11, as a report showed manufacturing in the region covered by the Federal Reserve Bank of Richmond in Virginia expanded in April. Data due today may show U.S. new home sales increased. Fed Bank of San Francisco President John Williams said this week the central bank will probably continue paring its asset purchases and end them late this year.
While gold’s 12-year bull run ended in 2013 on expectations for less U.S. stimulus, prices have risen 7.1 percent this year, reaching a six-month high in March in part as unrest in Ukraine spurred haven demand. Ukraine resumed operations to oust militants from eastern cities as the U.S. said 600 troops will be sent for exercises in four countries bordering Russia amid signs an accord to reduce tensions in the region was unraveling.
“Most of the factors in the gold complex are arrayed on the bearish side, except for the Ukrainian situation, which we believe remains singularly capable of turning things around if another major headline catches the shorts off guard,” Edward Meir, an analyst at INTL FCStone Inc. in New York, said in a report written late yesterday. Data “provided further evidence that the U.S. economy was emerging from its winter slump.”
Gold for June delivery rose 0.5 percent to $1,287.10 by 7:35 a.m. on the Comex in New York. Futures volume was 22 percent below the average for the past 100 days for this time of day, data compiled by Bloomberg showed. Bullion for immediate delivery gained 0.3 percent to $1,287.13 in London, according to Bloomberg generic pricing.