Gold dips as Russia back off in Ukraine, U.S. steps up in Iraq
Published Aug 08, 2014 02:19PM ET
Gold inches lower as geopolitical concerns fade
Investing.com - Gold prices fell on Friday after reports that Russia was standing down on the border with Ukraine coupled with news that the U.S. has launched airstrikes in Iraq to halt a Sunni insurgency there chipped away at the yellow metal's safe-haven appeal.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at 1,310.70 a troy ounce during U.S. trading, down 0.14%, up from a session low of $1,307.60 and off a high of $1,324.10.
The December contract settled up 0.33% at $1,312.50 on Thursday.
Futures were likely to find support at $1,283.30 a troy ounce, Tuesday's low, and resistance at $1,325.90, the high from July 17.
Gold, a popular safe-haven hedge against geopolitical uncertainties, fell on news Russian military exercises on the Ukrainian border are over.
Reuters, citing Russia's Interfax, reported earlier that Russia had ended its military exercises near the Ukrainian border, while in the U.S., President Barack Obama gave the go-ahead for air strikes in Iraq to halt a Sunni insurgency to protect Iraqi civilians from the uprising as well as U.S. personnel in Iraq.
The Iraqi government requested assistance, and gold fell on perceptions that U.S. airstrikes could stabilize the country even if temporarily.
Still, gold didn't plummet as concerns tensions could flare anew in Ukraine, Gaza and Iraq in the near future kept some investors sticking with the safe-harbor asset class.
Meanwhile, silver for September delivery was down 0.26% at $19.938 a troy ounce, while copper futures for September delivery were up 0.09% at $3.179 a pound.
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Written By: Investing.com
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