Gold Drops to $1307 but Supported by Risk Aversion

Gold dipped on Friday on profit-taking after jumping 1.5 percent overnight, but the metal is likely to be supported by a wave of risk aversion after a Malaysian airliner was downed in eastern Ukraine, killing nearly 300 people.

Gold, seen as an alternative investment during times of geopolitical uncertainty, rallied on Thursday after news of the plane crash, which a Ukrainian official said was caused by a missile fired by pro-Russian militants. The incident sharply raises the stakes in a conflict between Kiev and pro-Moscow rebels that has been going on for months, and has escalated tensions between Russia and the West.

“Geopolitical risks at the moment are quite elevated,” said Victor Thianpiriya, an analyst with ANZ.


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