Gold edges lower as European stocks recover
London (Aug 29) Gold eased yesterday, paring its narrow gains for the month, as European shares recovered some of the previous day’s declines and demand for physical metal waned on this week’s pick-up in bullion prices.
Investors remain on edge over tensions between Russia and Ukraine after Ukraine said on Thursday that Russia had moved troops into the country. However, the impact of the escalating conflict has not been enough to sustain gold price increases.
Spot gold was down 0.3 percent at $1,286.04 an ounce at 1147 GMT, while US gold futures for December delivery were down $3.30 an ounce at $1,287.10.
“Looking at Treasuries, worries about Ukraine are delivering some kind of support. However, I don’t think that is strong enough to trigger a more sustainable move into safe havens,” Heraeus precious metals trader Alexander Zumpfe said. “Market expectation of higher US interest rates is currently outweighing that safe-haven move.”
Source: The peninsulaquatar