Gold futures fell Tuesday as investors kept a close watch on the conflict in the Ukraine and U.S. economic data revealed likelihood of a continued recovery. Gold for August delivery, the most active contract, fell $7.60, or 0.6%, to settle at $1,306.30 a troy ounce on the Comex division of the New York Mercantile Exchange, reports the Wall Street Journal. Meanwhile, futures for December delivery added 0.2 percent to $1,310.10 an ounce today on the Comex in New York.
According to Bloomberg, from the start of the year, gold prices have rallied 8.8 percent, despite predictions of decline by reputable analysts including Goldman Sachs Group Inc. Since July, prices have fallen 1.1 percent.
Blake Robben, a senior market strategist at Archer Financial Services in Chicago said in a telephone interview with Bloomberg, "Tension between Ukraine and Russia is keeping prices supported. We are seeing gold's haven premium rise."
Without these current global tensions and conflicts, the price of gold would be far less than it is today, reports Bloomberg.
"Without the current geopolitical risks, gold would not be able to hold on to prices above $1,300," UBS AG analysts wrote in a report today, according to Bloomberg. "Such risks are holding potential shorts back."
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