Tensions between Russia and Ukraine prompted increased demand for storage havens on Tuesday as gold futures rose in value and barreled toward the threshold price of $1,400 per troy ounce, according to Bloomberg.
But a détente between Western powers and Russia prompted bullion to reverse earlier gains, according to Reuters. Prior to the de-escalation, tensions neared Cold War levels in the aftermath of the prime minister of Ukraine being ousted last month and Russian troops filing into the Crimea region of the nation. Investors are increasingly demanding the yellowish metal as it drives toward its top quarterly advance in seven years.
"Worries about a possible conflict are very constructive for gold, and we are seeing momentum traders come in," marketing strategist Quincy Krosby with Prudential Financials of Newark, New Jersey told the news source on Tuesday. "The mixed economic numbers out of the U.S. and concerns about slowdown in other parts of the world have boosted demand for a safe-haven asset."
At 9:12 a.m. on Tuesday, gold futures fell 1.29 percent, a $17.37 drop to $1,333.24 per troy ounce.
Russian President Vladimir Putin said military force only will be implemented in Ukraine as a final resort, Reuters reports.
