Intensifying tensions between Ukraine and Russia buoy the metal's safe-haven appeal
Bullion metals ended higher on Monday, 24 April 2014 at Comex. Gold futures rose for a second-straight session on Thursday to settle at their highest level in a week, as intensifying tensions between Ukraine and Russia buoyed the metal's safe-haven appeal. Developments in Ukraine offset a stronger-than-expected reading on durable-goods orders that bolstered expectations of a pick-up in economic growth and a continued reduction in the Federal Reserve's monetary stimulus.
Gold for June delivery tacked on $6, or 0.5%, to settle at $1,290.60 an ounce on the Comex division of the New York Mercantile Exchange. May silver climbed 25 cents, or 1.3%, to end at $19.69 an ounce.
New violence in Ukraine has helped to fuel the rally in gold. News reports on Thursday said Ukrainian military forces have stopped one of their operations in the eastern part of the country due to fears of Russia sending in its army to eastern Ukraine. The U.S. stock market backed down from its daily highs on the Ukraine-Russia tensions on Thursday. That, in turn, helped to put upside price pressure on gold and silver.
In overnight news, European Central Bank President Mario Draghi again hinted on Thursday that the ECB could ease monetary policy to ward off deflationary price pressures. The annual inflation rate for the EU is 0.5%, whereas the ECB is aiming for an annual inflation rate of 2.0%. In a sign the European Union is moving beyond its sovereign debt crisis, a Spain government bonds auction of several maturities fetched record low yields Thursdayranging from just over 1% to just over 3%. Also, a report on Thursday said the EU budget deficit fell below its target level for the first time since the EU debt crisis began in 2008.
U.S. economic data released Thursday included the weekly jobless claims report, the Kansas City Fed manufacturing survey, and durable goods orders.
The initial claims level increased to 329,000 for the week ending April 19 from an upwardly revised 305,000 (from 304,000) for the week ending April 12. The consensus expected the claims level to increase to 312,000.
Also, durable goods orders increased 2.6% in March after increasing a downwardly revised 2.1% (from 2.2%) in February. The consensus expected durable goods orders to increase 2.0%. Transportation orders were still important, up 4.0% after increasing 6.7% in February, but were not the sole provider of growth. Durable goods orders excluding transportation increased 2.0% in March, up from a 0.1% increase in February. That was also well above the consensus expectation of a 0.5% gain.
Powered by Capital Market - Live News
