A drop in tensions over Ukraine take back some shine
Bullion prices ended lower at Comex on Tuesday, 04 March 2014. Gold prices ended the U.S. day session lower as traders took some profits. A slight de-escalation in the Ukraine crisis also put some risk appetite back into the market place on Tuesday. Gold prices closed lower on Tuesday, losing almost half of what they gained a day earlier as a drop in tensions over Ukraine cost the metal some of its perceived safe-haven attraction.
Gold for April delivery fell $12.40, or 0.9%, to settle at $1,337.90 an ounce on the Comex division of the New York Mercantile Exchange.
May silver closed down 26 cents, or 1.2%, to $21.22 an ounce.
Traders and investors on Tuesday perceived the situation regarding the Russian military invasion of Crimea and the civil unrest in Ukraine has de-escalated a bit Tuesday, which put some risk appetite back into the world market place. This is likely due to reports Russian President Vladimir Putin has halted his military exercises near the Ukrainian border and ordered troops there back to their bases.
In other news overnight, producer prices in the European Union fell 0.3% in January, and were down 1.3% year-on-year. That's the largest year-on-year drop in producer prices in the Euro zone in over four years. The report underscores there should still be concern in the market place about deflationary price pressures in the European Union.
U.S. economic data released Tuesday was light and had no impact on the market place. The data-point pace picks up as the week progresses. The big economic news of the week will be the European Central Bank's monthly monetary policy meeting on Thursday and the U.S. monthly employment report on Friday.
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