Gold Awaits Ukraine and US Policy Changes

Gold held below $1,300 an ounce as investors weighed the outlook for U.S. monetary stimulus against unrest in Ukraine. Assets in exchange-traded funds backed by platinum and palladium climbed to records.

Bullion for immediate delivery traded at $1,293.50 an ounce at 6 p.m. in Singapore from $1,292.61 on May 23, according to Bloomberg generic pricing. The metal decreased 0.1 percent on May 23 after data showed sales of new homes in the U.S. increased the most since October. The U.S. and U.K. markets are shut for holidays today.

Gold sank 28 percent last year on expectations that the Federal Reserve will further reduce bond purchases as the economy improves. Prices rebounded 7.7 percent this year partly on tension between Ukraine and Russia. Kazakhstan, Turkey and Belarus expanded gold reserves in April as Mexico cut holdings, according to data on the International Monetary Fund website.

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