Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • Dick Young’s Safe America
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Dynamic Maximizers®
  • Retirement Compounders®
  • Free Email Signup

Gold Signals Trouble

April 8, 2014 By E.J. Smith

Gold prices signal distrust with Putin and the future of Ukraine. Reuters reports:

Gold rose 1 percent on Tuesday on a sharply lower dollar and as renewed tensions between the United States and Russia over Ukraine burnished bullion’s safe-haven appeal.

The metal was also underpinned by official-sector buying after Iraq’s central bank said it might buy more gold in the
next few months, having bought 60 tonnes over the past two.

Bullion prices have sharply pulled back from a six-month high near $1,400 an ounce in mid-March as geopolitical tensions eased after Russia officials said the country had no intention to invade other parts of Ukraine outside of Crimea.

On Tuesday, U.S. Secretary of State John Kerry accused Russian agents and special forces of stirring separatist unrest in eastern Ukraine, saying Moscow could be trying to prepare for military action as it had in Crimea.

“The unrest in the Ukraine and the escalating rhetoric from the U.S. is creating fear of an armed conflict, so safe-haven demand is definitely driving up gold prices today,” said Miguel Perez-Santalla, vice president of online precious metals exchange BullionVault.

Spot gold was up 1 percent at $1,308.75 an ounce by 3p.m. EDT (1900 GMT), having reached a two-week high of $1,314.43
in earlier trade.

U.S. COMEX gold futures for June delivery settled up$10.80 at $1,309.10 an ounce, with trading volume about 40 percent below its 30-day average, preliminary Reuters data showed.

Technical issues had shut down contracts on CME Group’s Globex electronic trading system on Tuesday afternoon with primarily agricultural and grains contracts affected and no impact on oil or metals.

Bullion also received a boost as the dollar index fell 0.6 percent against a basket of major currencies.

Ukraine has launched what it described as an”anti-terrorist” operation in the eastern city of Kharkiv and said about 70 separatists had been arrested for seizing the regional administration building.

Gold is usually seen as an insurance against risk in times of economic uncertainty or global political troubles.

The next market focus will be the release on Wednesday of U.S. Federal Reserve minutes for the March FOMC meeting.

The rise in bullion comes despite subdued demand in top buyer China, where prices have been at a discount for more than a month. Chinese gold prices have been at a discount to spot prices since early March, leading to lower imports.

Among other precious metals, silver rose 0.9 percent to $19.99 an ounce, while platinum was up 1.1 percent at $1,437.25 an ounce and palladium gained 1.7 percent to $774.10 an ounce.

 

 

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • The Quiet Gold Rally
  • Gold Begins to Shine
  • Gold Strong on Dollar Fears
  • Author
  • Recent Posts
E.J. Smith
E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris.

Please get in touch with E.J. at ejsmith@youngresearch.com
Latest posts by E.J. Smith (see all)
  • Your Survival Guy: Clearing the Decks, Buying a Boat, Seeing the World and More - June 24, 2022
  • Here’s Why You Need a 15-Year Retirement Investment Plan - June 23, 2022
  • Kellogg Cuts Loose with Split Plan - June 22, 2022

Search Young Research

Most Popular

  • Will the Fed Stick to Its Course?
  • RECESSION? Dow 25,000, $8 Gas, Rising Interest Rates, Spell Mid-term Crack Up
  • Investing During a Recession
  • Swiss National Bank Surprises World with Rate Hike
  • Kellogg Cuts Loose with Split Plan
  • The Power of a Compound Interest Table
  • MONEY TALKS: The Best Service in Paris
  • Predictions of MEGA-SPENDING on Metaverse
  • Apple Shares Resilient in the Face of Recession
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Could this Be the Vanguard GNMA Winning Edge?

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

RSS The Latest at Richardcyoung.com

  • Greetings From Paris & Le Bristol Hotel
  • The Most Controversial Restaurant in Paris?
  • Your Survival Guy: Clearing the Decks, Buying a Boat, Seeing the World and More
  • Russia’s “Unsubtle” Artillery Attacks Not Necessarily “Archaic”
  • FLORIDA DODGED A BULLET: Elected Superb DeSantis Over Unstable Gillum
  • Biden, a Job Killing Machine
  • Good News for the 2nd Amendment
  • La Fontaine De Mars: Best Sunday Paris Lunch
  • My 10 Favorite Books about France, Plus a Bonus for You
  • BREAKING: Supreme Court DISMANTLES New York’s Unconstitutional Gun Laws

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2022 | Terms & Conditions

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.