Gold Rises as Ukraine Heightens Safe Haven Demand

Gold prices are higher in early U.S. trading Thursday, on safe-haven buying interest, short covering and perceived bargain hunting. Geopolitics is back on the front burner of the market place as a three-day U.S. holiday weekend approaches. December Comex gold was last up $11.00 at $1,294.40 an ounce. Spot gold was last quoted up $10.90 at $1,294.00. December Comex silver last traded up $0.32 at $19.795 an ounce.

It’s a “risk-off” day in the market place Thursday following reports the Ukrainian president said the Russian military has invaded his country and is occupying eastern Ukraine towns and villages. There is reportedly ongoing fighting between the Russian and Ukraine armies. A Russian official denied that Russian troops are in eastern Ukraine.
Gold, U.S. Treasuries and the U.S. dollar index are all supported on safe-haven demand amid this news. Meantime, world stock markets are seeing selling pressure from the keener risk aversion in the market place Thursday.

It had been a subdued trading week, on this unofficial last week of summer, heading into the three-day U.S. Labor Day holiday weekend. Now, with geopolitical tensions rising, the three-day weekend and all that could happen in world hotspots during that time, many traders and investors will take action the next two trading sessions to reduce their risk exposure in the market place.

via Kitco

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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