Gold Ends Higher On Ukraine Concerns

London (Mar 11)  Gold futures ended higher for a second straight session on Tuesday, as markets continued to closely monitor the tussle between Russia and the West over Ukraine, even as the crucial referendum in Crimea comes up for vote next Sunday to determine the status of the region. The referendum will decide if people in the Crimea region would prefer to stay with Ukraine or join Russia.

Gold prices also found support on renewed safe haven buying, as investors continued to mull over some weak Chinese trade data which suggests the sluggishness in the nation's economy may be more than initially envisaged.

The ongoing tension in Ukraine continued with the country's parliament warning the Crimean assembly that it would be dissolved if the referendum slated for Sunday takes place, which calls for the region to join Russia. The Crimean assembly has been given time until Wednesday to stop the referendum.

Gold for April delivery, the most actively traded contract, gained $5.20 or 0.4 percent to close at $1,346.70 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday.

Gold for April delivery scaled an intraday high of $1,353.00 and a low of $1,337.80 an ounce.

Yesterday, gold futures settled higher, after data on Saturday showed China's exports in February plummeted over 18 percent from last year.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose to 812.70 tons from its previous close.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 79.79 on Tuesday, up from its previous close of 79.75 late Monday in North American trade. The dollar scaled a high of 79.93 intraday and a low of 79.72.

Source: rttNews