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Gold futures rise to 3-week highs on Iraq, Ukraine tensions

Published 08/08/2014, 02:27 AM
Gold rises as geopolitical tensions boost safe-haven demand
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Investing.com - Gold futures rose to three-week highs on Friday, as mounting geopolitical tensions in Iraq and Ukraine further boosted safe-haven demand.

On the Comex division of the New York Mercantile Exchange, gold for December delivery traded at $1,321.10 a troy ounce during European morning trade, gaining 0.66%.

The December contract settled 0.33% higher on Thursday to end at $1,312.5 a troy ounce.

Gold futures were likely to find support at $1,303.00 an ounce, Thursday's low and resistance at $1,340.90, the high from July 14.

Gold prices strengthened after U.S. President Barack Obama on Thursday authorized air strikes in Iraq to put an end to an onslaught by Islamic militants and begun military air-drops of humanitarian supplies to besieged religious minorities to prevent a "potential act of genocide".

Meanwhile, demand for the precious metal also remained supported amid fresh tensions between Russia and the West over Ukraine.

On Thursday, Moscow banned imports of most food from the West in retaliation against sanctions against it over Ukraine.

Visiting Kiev this week, NATO's secretary general says that Moscow has massed troops on the country's border with Ukraine in preparation for a possible ground invasion.

Elsewhere on the Comex, silver for September delivery climbed 0.59% to trade at $20.108 a troy ounce, while copper for September delivery slipped 0.20% to trade at $3.164 a pound.

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