Gold Drops Below $1340 as Ukraine Tensions Cool

Gold settled about 1 percent lower on Tuesday as investors took profits from the previous session’s rally to near four-month highs after President Vladimir Putin said Russia would only use military force in Ukraine as a last resort.

Bullion’s drop came as U.S. equities measured by the S&P 500 index surged more than 1 percent to a record high after Putin ordered troops involved in a military exercise near the Ukrainian border back to their bases as he sought to ease tensions.

Prices of safe-haven U.S. Treasury debt also fell following Monday’s gain after escalating military tension between Russia and the West over Ukraine hammered Russian financial markets.


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