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.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.