Gold Drops to $1307 on Backdrop of Global Tensions

Gold fell in New York, retreating from the biggest advance in four weeks amid tension in Ukraine and the Middle East, as a stronger dollar curbed demand. Palladium traded below the highest price in 13 years.

Gold rose 1.3 percent yesterday after a Malaysia Airlines plane was shot down over Ukraine and Israel sent ground forces into the Gaza Strip. Russia and Ukraine blamed each other for the downing of the Boeing Co. 777 jet over the eastern region of the country, which killed all 298 people on board.

Gold has rebounded this year from the biggest annual drop in three decades as U.S. policy makers pledged to keep interest rates low and unrest in the Middle East and Ukraine spurred haven demand. Prices are still set for the first weekly loss in seven as Federal Reserve Chair Janet Yellen said benchmark rates could increase sooner than expected. The dollar reached a four-week high against a basket of 10 major currencies today.

Bloomberg

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