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Gold Little Changed After First Weekly Loss

Published 07/21/2014, 05:18 AM
Updated 07/09/2023, 06:31 AM

Gold ticked slightly higher early Monday as demand for safety grew amid heightened geopolitical risks folllowing the volatility in markets last week.

Investors swung between risk taking and risk aversion in the past few sessions, with global events over the weekend, whether in Ukraine or Gaza or both, spurring fears of hightening global risks, as well as last Thursday's Malaysia Airlines crash giving up the precieved saftey to gold. Meanwhile, the outlook for US interest rate hike kept the market seeking for new hints about the Federal Reserve's next policy direction

Spot Gold was little changed after the first weekly loss in seven, trading above the $1,300-mark for the third session. The metal was up 0.35% around $1,314 an ounce as of 03:48 a.m. ET.

On Friday, gold futures snapped a two-day gain on profit taking and as investors reduced their holdings of the precious metal as they reassessed the geopolitical updates in Eastern Europe.

Nonetheless, the losses were limited after a Thomson Reuters and University of Michigan report showed consumer sentiment in the U.S. to have unexpectedly deteriorated in July, while the Conference Board's leading economic index rose less than expected in June.

Continued tensions in Ukraine over the shooting down of a Malaysian Airlines passenger jet close to the Russia-Ukraine border in which 298 people were killed also supported gold prices.

On Thursday, gold posted its steepest gains in nearly a month after a Malaysia Airlines jet crashed near the Russia-Ukraine border. The deadly crash came amid escalating violence between Ukrainian and separatist forces, and raised questions over Russia's role in the conflict. Gold is considered by some investors as a haven from geopolitical risks.

Gold prices experienced wild swings this week, first falling sharply Monday on profit taking after reaching the highest level since March in the previous week and ahead of Federal Reserve Chair Janet Yellen's congressional testimony.

The heightened conflict between Israel and Hamas over the weekend also kept prices steady above $1,300-level, while diplomatic efforts to end the two-week intensified after battles killed dozens of palestinians and moer than 10 Israeli soldiers in conflict's deadliest day.
Among other precious metals:
  • - Spot Silver rose 0.63% to $20.97 an ounce
  • - Spot Platinum rose 0.40% to $1,492.00 an ounce
  • - Spot Palladium rose 0.40% to $882.30 an ounce


Russia is the world's top palladium producer, and second behind South Africa in platinum output.

Some investors had worried that escalating tensions in Eastern Europe could lead to more trade sanctions against Russia, potentially curbing supplies of both metals.

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