Gold prices rose to the highest level since September on Monday, as concerns escalated over Ukraine after results of Sundays referendum showed voters in Crimea voting to join Russia. On the Comex division of the New York Mercantile Exchange, gold futures for April delivery rose to a session high of $1,392.50 a troy ounce, the most since September 9. Gold last traded at $1,382.90 an ounce during European morning hours, up 0.28%, or $3.90. Gold rose 0.48%, or $6.60 an ounce, on Friday to settle at $1,379.00. Futures were likely to find support at $1,345.60 a troy ounce, the low from March 12 and resistance at $1,399.40, the high from September 5. Meanwhile, silver for May delivery inched down 0.35%, or 7.6 cents, to trade at $21.33 a troy ounce. Silver ended Friday’s session up 1.01%, or 21.5 cents, to settle at $21.41 an ounce. Demand for safe haven assets remained supported after preliminary results showed that more than 95% of voters in Crimea chose to break away from Ukraine and join Russia in a referendum deemed illegal by the European Union and the U.S. Russias lower house of parliament has stated that it will pass legislation allowing Crimea to join the nation in the very near future. U.S. President Barack Obama said Washington rejected the results of the referendum and warned that the U.S. was ready to impose sanctions on Moscow. Western countries have threatened to ratchet up sanctions against Russia if it does not back down on annexing Crimea. Meanwhile, market players looked ahead to key U.S. economic data later in the day for further indications on the strength of the economy and the future course of monetary policy. The U.S. is to publish data on manufacturing activity in the Empire State, as well as reports on industrial production and long term securities transactions. The Federal Reserve is to kick off its two-day policy-setting meeting on Tuesday, amid expectations for a reduction in its bond buying program to $55 billion from the current $65 billion. Elsewhere on the Comex, copper futures for May delivery slumped 0.8%, or 2.4 cents, to trade at $2.927 a pound, as ongoing concerns over the health of China’s economy dampened demand for growth-linked assets. The industrial metal fell to $2.908 a pound on March 12, the lowest since July 2010.
Posted on: Mon, 17 Mar 2014 09:05:26 +0000
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