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Gold edges lower as markets monitor geopolitical tension

Published 08/11/2014, 03:59 AM
Updated 08/11/2014, 03:59 AM
Gold dips with Ukraine, Iraq in focus

Investing.com - Gold futures edged modestly lower on Monday, as market players continued to monitor geopolitical developments from Ukraine and the Middle East.

On the Comex division of the New York Mercantile Exchange, gold for December delivery dipped 0.15%, or $2.00, to trade at $1,309.00 a troy ounce during European morning hours.

Prices held in a narrow range between $1,306.50 and $1,312.80 an ounce.

Futures were likely to find support at $1,288.50, the low from August 6 and resistance at $1,324.30, the high from August 8.

Fighting between Ukraine security forces and pro-Russia rebels continued in eastern Ukraine over the weekend, as Ukraine dismissed the insurgents’ offer of a ceasefire.

Russian President Vladimir Putin, blamed by Ukraine and its U.S. and European allies for supporting the rebels, has said the fighting is creating a humanitarian crisis and offered to provide aid.

On Friday, Russia said it ended military exercises on the Ukrainian border, which the U.S. had criticized as a provocative step amid the tense situation in Ukraine.

Meanwhile, in Iraq, the U.S. conducted a third day of air strikes against jihadi militants from the Islamic State insurgent group in northern Iraq on Sunday in an effort to protect Iraqi civilians from the uprising as well as U.S. personnel in the country.

Elsewhere, Israel and Hamas agreed to a fresh 72-hour ceasefire in Gaza on Sunday, following a month of violence in the Hamas-ruled territory.

Gold is often seen as a haven investment in times of geopolitical uncertainty.

Also on the Comex, silver for September delivery eased down 0.19%, or 3.8 cents, to trade at $19.90 a troy ounce.

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Elsewhere in metals trading, copper for September delivery tacked on 0.03%, or 0.1 cents, to trade at $3.175 a pound, after Chinese inflation data for July released over the weekend held steady at 2.3% on-year, in line with expectations.

The data indicated that policy makers in Beijing still have room for monetary easing amid a lack of pressure on prices.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption.

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