Gold, regarded as a haven investment jumped to a three-week high on Monday, gaining for a second straight session amid deadly clashes between pro-Russian rebels and military in Ukraine’s east. Platinum and Palladium, meanwhile, fluctuated.
Prices jump to highest since April 15, as worries about escalating violence in Ukraine bolstered investor demand for the haven asset. Violent clashes between Ukraine`s army and pro-Russian forces broke out in six cities in eastern Ukraine over the weekend, forcing the U.S. to announce further sanctions.
Spot gold is currently trading at $1,311.04 sharply up by 0.96 percent, 12.52 point after opening at $1,300.26 while hitting an intraday high at $1,313.62 and low at $1,299.40. The metal is expected to face support at $1,276.41 and resistance at $1,331.35.
In the physical markets, gold prices were steady in China, trading on the sidelines after the Labour Day holiday last week. Weak demand from China, the world`s top consumer of bullion, in recent weeks has also weighed on gold prices.
Pro-Russia militants broke down a Ukrainian police compound in Odessa on Sunday two days after over 40 pro-Russia activists died in a blaze at a building they had occupied after clashes with pro-Kiev groups. The armed men freed nearly 70 fellow activists.
As the west accuses Russia of leading a separatist revolt in eastern Ukraine after it annexed Crimea, U.S. and other European countries are preparing to punish Russia and provide more support for Ukraine’s new pro-Europe government as the crisis in eastern country escalates.
U.S. Secretary of State John Kerry threatened Russia with further sanctions on Sunday, unless government stopped backing separatists in eastern Ukraine. President Barack Obama and German Chancellor Angela Merkel have set a May 25 trigger for possible economic sanctions against Russia.
As of 3:02 EST:
- Silver gained 0.60%, 0.12 points to $19.63
- Platinum added 0.35%, 5.00 points to $1,442.25
- Palladium rose 0.26%, 2.10 points to $814.30
Copper prices fell sharply on Monday, following the release of disappointing manufacturing data from China - the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Data released earlier showed China’s manufacturing sector contracted for the fourth consecutive month in April, underlining concerns that an economic slowdown in the world’s second-largest. Final Purchasing Managers Index (PMI) on manufacturing sector ticked lower to 48.1 in April from a final reading of 48.3 in March.
On the Comex division of the New York Mercantile Exchange, Copper slashed 0.33 percent, 1.00 points to trade at $306.00.