Gold Settles Higher On Ukraine Tensions, U.S. Data
New York (Feb 24) Gold futures ended higher on Thursday, boosted by safe haven demand amid mounting geopolitical tensions in Ukraine with European investors on edge over a potentially bloody intervention by Russia. Prices were also supported by some weak data from the U.S. with initial claims for unemployment benefits rising and new orders for manufactured durable declining in January.
In some soft economic news from the U.S., new orders for manufactured durable goods declined in January, largely due to weakness in demand for transportation equipment which is typically very volatile, a Commerce Department report showed Thursday.
Meanwhile, first-time claims for U.S. unemployment benefits came rose more than expected in the week ended February 22, a report from the Labor Department revealed Thursday.
Continuing her testimony before the Senate Banking Committee on Thursday, the Federal Reserve Chair Janet Yellen said the central bank will continue to taper back its $65 billion-a-month bond-buying program unless there is a significant downturn in the economy. It was Yellen's second appearance as head of the central bank, with her remarks little changed from her first meeting with Congress on February 11. Today's testimony was re-scheduled from February 12 due to snow storms in Washington DC.
Gold for April delivery, the most actively traded contract, gained $3.80 or 0.3 percent to close at $1,331.80 an ounce on the Comex division of the New York Mercantile Exchange on Thursday.
Gold for April delivery scaled an intraday high of $1,336.40 and a low of $1,324.00 an ounce.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained unchanged at 803.70 tons previously.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.29 on Thursday, down from its previous close of 80.41 late Wednesday in North American trade. The dollar scaled a high of 80.58 intraday and a low of 80.23.
Source: RTT-News
