Gold Rises as Safe Haven Demand Increases

Gold gained in New York, after the first weekly loss in seven, as investors weighed tension in Ukraine and Gaza against the outlook for higher U.S. interest rates. Palladium traded below a 13-year high.

Gold slipped 2 percent last week as the dollar climbed to a four-week high versus 10 major currencies and Federal Reserve Chair Janet Yellen said benchmark rates could increase sooner than expected. Bullion slid 28 percent last year on expectations the Fed will reduce monetary stimulus.

Unrest in Ukraine and the Middle East partly helped gold rebound 9.4 percent this year. Russian President Vladimir Putin is facing intensified international pressure after pro-Russian rebels were blamed for downing a passenger jet on July 17, killing 298 people on board. A ground offensive in Gaza entered its bloodiest phase yet after two weeks of fighting between Palestinian and Israeli soldiers.

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