Aug 28 (APMEX) — SOFTER DOLLAR, RISING TENSIONS BOOST GOLD
A softer dollar and rising tensions between Ukraine and Russia have the Gold price close to reclaiming the $1,300 per ounce level. Societe Generale analyst Robin Bhar said, “The metal rebounded today, testing the resistance around the $1,290 [per ounce] level because obviously the dollar is a bit softer and there has been some further skirmishes along the Ukraine-Russia border helping see some safe-haven buying.” A physical dealer in Singapore mentioned that physical demand overseas is increasing as well. The dealer said, “Demand from India, especially for Silver, has picked up because of the upcoming festival season. Overall, demand has been good in the last days, but things are quieter today.”
Russian forces have reportedly entered Ukraine, causing Ukrainian President Petro Poroshenko to cancel a trip to Turkey. A member of forces supporting the Ukrainian army told Reuters, “There is military equipment in Novoazovsk which came across the border two days ago from Russia. The equipment is carrying the flags of the DNR (Donetsk People’s Republic) rebels but they are regular Russian forces.” U.S. stock futures and European stocks have dropped due to these developments.
At 9 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,293.90, Up $9.40.
- Silver, $19.75, Up $0.28.
- Platinum, $1,429.10, Up $9.20.
- Palladium, $899.30, Up $4.50.