Russia May Retaliate Sanctions By Demanding Payment For Exports In Gold
London (Mar 13) Gold extended gains to a third session today, reaching fresh six month highs as investors hedged geopolitical risks and Chinese economic slowdown fears. Gold hit $1,375.20, its highest since September 10 and has gained 14% so far this year on global geopolitical and macroeconomic risk.
A significant bond default in China and a weak exports report has sent equities and base metals lower in recent days. More data overnight showed China's economy slowed sharply in the first two months of the year, with growth in investment, retail sales and factory output all falling to multi-year lows.
The biggest factor driving gold prices at the moment is the increasing tension between the West and Russia over Ukraine. The EU agreed on a framework yesterday for its first sanctions on Russia since the Cold War.
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Source: ZeroHedge
