Gold Drops to $1268 after Iraq Surge

Gold capped the longest rally in almost four months as intensifying unrest from Iraq to Ukraine increased demand for the precious metal as a haven.

Bullion has climbed 6.1 percent this year partly because of tension in Ukraine, which said today that natural gas supplies had been cut off by Russia amid worsening relations between the two countries. Iraq’s army killed more than 279 fighters from the Islamic State in Iraq and the Levant and destroyed 50 of the group’s vehicles within 24 hours, military spokesman Qassim Ata said yesterday.

“Some people see the need for gold, as there has been a breakdown of international agreement in Ukraine and as the situation in Iraq worsened,” Jeffrey Christian, the managing director at New York-based CPM Group Inc., said in a telephone interview.

Bloomberg

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