Gold Drops to $1281 as Global Data Assessed With Ukraine

Gold extended a declined from a one-week high, retreating for a third day, as investors weighed the health of the global economy against tension between Ukraine and Russia. Palladium fell from a 13-year high.

Bullion for immediate delivery lost as much as 0.4 percent to $1,280.41 an ounce and was at $1,280.68 by 12:18 p.m. in Singapore, according to Bloomberg generic pricing. The metal rose to $1,296.61 on Aug. 28, the highest since Aug. 20, and last week capped the first weekly increase in three, amid what the U.S. and Europe said were incursions by Russia into Ukrainian territory.

Gold rebounded from a two-month low on Aug. 21 as economic data signaled an uneven global recovery and unrest in Ukraine spurred haven demand. While U.S. housing to employment have shown signs of improvement, boosting the dollar, reports yesterday showed manufacturing in China and the euro-area slowed more than estimated in August. Ukraine yesterday warned of an escalating conflict in its easternmost regions.

Bloomberg

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