Gold, oil rise on continuing geopolitical instability

Chicago (Aug 7)  Gold futures rose for a second session today to remain above the key $1,300 mark as tensions in Eastern Europe and violence in the Middle East boosted demand for a haven.

December gold gained 0.3 percent to settle at $1,312.50 an ounce on the Comex division of the New York Mercantile Exchange.

Russia announced a ban on food imports from the European Union, the U.S. and several other countries in retaliation against Western sanctions.

In energy markets, Brent crude advanced from a nine-month low after militants captured a dam in Iraq, bolstering concern that unrest will spread in OPEC’s second-biggest oil producer. West Texas Intermediate futures also climbed.

Brent for September settlement climbed 0.7 percent, to $105.35 a barrel on the London-based ICE Futures Europe exchange at 12:47 p.m. in New York.

WTI for September delivery gained 0.6 percent, to $97.53 a barrel at 3:19 p.m. on the New York Mercantile Exchange. It touched $96.55 earlier, the lowest intraday price since Feb. 4.

Militants from an al-Qaeda breakaway group in Iraq captured the country’s largest dam, whose destruction could flood Mosul, according Bloomberg. President Barack Obama is considering airstrikes in Iraq, the New York Times reported.

Source: ProactiveInvestor