Gold Threatening to Drop Through $1300

Gold ended lower on Friday, but it managed to inch up from session lows after reports that Ukraine forces had engaged an Russian armored column on Ukrainian soil boosted the metal’s safe-haven appeal.

A Ukrainian military spokesman said that Ukraine forces had tracked the armored column after it crossed the border. The Ukrainian president told British authorities that Ukraine artillery had destroyed part of the armored equipment that crossed the border during the night, according to a presidential website. Russian military forces denied the claims.

“Risk has evaporated from the markets after the Ukraine headlines,” said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington. “We have seen investors use the yen and Swiss franc as safe harbors.”  U.S. gold futures for December delivery settled $9.50 an ounce at $1,306.20 an ounce, having earlier hit a session low of $1,293.00 an ounce. It was down about 0.3 percent on the week. Spot gold was last down 0.6 percent at $1,305 an ounce.

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