Gold Climbs in New York on Increased Demand for HavenLuzi Ann Javier and Nicholas Larkin
Gold prices climbed in New York as tensions between Ukraine and Russia boosted demand for the metal as a haven.
Ukraine won’t let a convoy of 280 trucks that Russia says are carrying humanitarian aid to cross into its territory, arguing the mission doesn’t adhere to international rules and must be led by the Red Cross.
Gold has rallied 9 percent this year, defying bearish forecasts from Goldman Sachs Group Inc., as violence in Eastern Europe and the Middle East increased the appeal of the metal as a hedge against declines in other assets. The dollar also climbed today, while global equities were little changed.
“There’s multiple hotspots in the world that could easily spiral out of control to something much greater,” Tim Evans, the chief market strategist at Long Leaf Trading Group in Chicago, said in a telephone interview. “You’ll find that investors will normally flock to safe-haven markets, like gold, in case something really does develop much greater than what we’re seeing currently.”
Gold futures for December delivery rose less than 0.1 percent to settle at $1,310.60 an ounce at 1:34 p.m. on the Comex in New York. The precious metal pared gains after the Standard & Poor’s 500 Index of U.S. shares trimmed losses.
Prices rose 1.3 percent last week as the U.S. authorized air strikes in Iraq. Trading was 21 percent below the average for the past 100 days for this time of day, data compiled by Bloomberg show.
Bullion fell 3 percent in July on concern that the Federal Reserve will move closer to raising interest rates as the labor market improves. In 2013, signs of U.S. economic expansion sent gold down 28 percent as stocks rose to a record.
Silver futures for September delivery slid 0.9 percent to $19.905 an ounce in New York.
On the New York Mercantile Exchange, platinum futures for October delivery climbed less than 0.1 percent to $1,472.20 an ounce. Palladium futures for September delivery rose 0.4 percent to $878 an ounce, after touching $884.05, the highest for a most-active contract since July 29.