Gold rose slightly on Wednesday, yet still trades below $1300, as the escalating tensions on borders between Russia and Ukraine spurred haven demand of safe haven assets.
“Polish foreign minister Radoslaw Sikorski said Russia has gathered military forces at the border with Ukraine to either put pressure on the neighbouring country or to enter it,” Reuters said.
The shiny metal is trying to take advantage once again from the geopolitical tensions, but the improvement in U.S. data and the strength of the dollar are putting downside pressure on the metal’s prices.
Data released yesterday from the U.S. showed that ISM non-manufacturing composite climbed to 58.7 last month, compared to both prior and predicted readings of 56.0 and 56.5.
Still, there are some hopes the Federal Reserve may rethink about raising borrowing cost earlier than market anticipations.
Fed Bank of Dallas President Richard Fisher yesterday said policymakers are becoming more hawkish.
The U.S. dollar inched up versus a basket of major currencies to trade near an 11-month peak. The dollar index is meanwhile hovering around 81.64 after touching a high of 81.69.
Gold is currently trading around $1291.31 after hitting a high of $1292.06 and a low of $1287.56.
Crude Oil for September’s delivery traded slightly lower around $97.50 after hitting a bottom of $97.37.