Thursday 7 August 2014

Gold well bid above $1,300 as Ukraine boosts safe-haven appeal

Gold held on to overnight gains above $1,300 on Thursday, trading near its highest in more than a week as fears of Russian military action against Ukraine and retaliation by Moscow over Western sanctions burnished gold's appeal as a safe haven.

Russia will ban all imports of food from the United States and all fruit and vegetables from Europe, the state news agency reported on Wednesday, even as NATO said Russia had massed around 20,000 combat-ready troops on Ukraine's border.

The troop build-up sapped risk appetite, sending equities lower and global bond prices higher.


The metal hit $1,309.60 in the previous session - its highest since July 29. US gold was also steady at $1,308.60 after rising 1.8 per cent in the previous session.

Gold is seen as an alternative investment to riskier assets such as equities, especially during times of economic and geopolitical uncertainties. It has gained more than 8 per cent this year on geopolitical tensions. 

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