Precious Gold traded near its highest level in three weeks as escalating tensions in Ukraine beat the improvement in U.S. data.
The pace of violence rose in Ukraine on Tuesday as in the eastern Ukrainian port of Mariupol, where some reporters mentioned that at least one person was killed and three were wounded in an attack on a checkpoint.
Investors are keeping their attention on Ukraine amid fears of seeing a real civil war in the country.
The shiny metal found some support from Ukraine’s tension to avoid collapsing to critical areas after hitting a bottom of $1268.40 on April 24.
Meanwhile, gold is trading around $1313.10 an ounce after hitting a high of $1314.24 and a low of $1306.68.
The rise above Daily SMA 200 located at $1298 levels helped the metal to continue its advance above three week high.
The U.S. dollar resumed its drop versus a basket of major currencies to hover around 79.15, after hitting a peak of 79.19, according to the dollar index.
Data released yesterday from the United States signaled a narrow in trade deficit in March, thanks to the rise in exports that posted its biggest gain in nine months.
Although the recent data from the U.S. showed progress in the economy, investors are still uncertain about the future of the Fed’s monetary policy.
Later in the day, Fed Chairman Janet Yellen will testifies to Joint Economic Committee.
Demand from China soared as the benchmark spot gold contract in Shanghai leaped for a second day on Tuesday.
Crude oil for June’s delivery edged up to trade around $100.48 a barrel after touching a low of $99.77.