Precious-Gold rebounded on Tuesday to trade above $1300 an ounce as escalating tension in Ukraine provided some haven demand on the metal.
Worries reignited in Ukraine after the region of Donetsk have proclaimed their independence from Kiev and vowed to hold a referendum in the next month.
Concerns of having another Crimea helped gold to rebound today after closing below $1300 on Monday.
“Ukraine has launched an anti-terrorist operation in the eastern city of Kharkiv and about 70 separatists have been arrested for seizing the regional administration building,” Reuters said.
Tomorrow, the attention will shift to the Fed’s minutes of the March 18-19 monetary decision, which included cutting monthly bond purchases by another $10 billion to a total of $55 billion.
Fed Chairman Janet Yellen said on March 19, she hinted to the possibility of raising interest rates in six months after the end of bond purchases withdrawal, but she referred last week the U.S. economy will need to hold stimulus for “some time,” but
The infamous jobs report released on Friday showed that U.S. employers added 192,000 jobs last month, compared with analysts’ projection of 200,000, sparking some uncertainty about the Fed’s monetary outlook.
Meanwhile, gold is traded around $1309.40 an ounce after hitting a high of $1309.88 and a low of $1296.06.
After resting upon support at $1297 yesterday, which represents Daily SMA 200, the price rose today after the breach of the previously mentioned level.
On the physical side, gold prices failed to gain support from the world’s biggest bullion buyer China, where markets were closed yesterday for the Tomb Sweeping holiday.
The U.S. dollar slipped for a third straight session versus a basket of major currencies to hover around 80.17, falling from a peak of 80.35, according to the dollar index.
Crude oil for May’s delivery retreated to trade around $100.31 a barrel after touching a low of $100.67.