Gold Climbs Above $1270 as Lows Encourage Buying

Gold advanced for a second day on speculation that prices near the lowest level since June may encourage purchases as investors assessed tensions in Ukraine and the outlook for higher U.S. borrowing costs.

Bullion for immediate delivery rose as much as 0.3 percent to $1,273.51 an ounce, and traded at $1,272.95 by 11:22 a.m. in Singapore, Bloomberg generic pricing shows. The metal fell to $1,261.35 yesterday, the lowest since June 17, before ending 0.3 percent higher.

Gold has rallied 5.9 percent this year as unrest in the Middle East and Ukraine boosted haven demand. Russian President Vladimir Putin and his counterpart Petro Poroshenko yesterday agreed on steps to end more than five months of fighting in Ukraine’s eastern regions. Volumes for the benchmark spot contract in Shanghai reached a five-week high on Sept. 1.

Bloomberg

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