Gold prices on Wednesday found further support from the tensions in Ukraine and were headed for their third consecutive days of gains, while copper took a pause from all the recent selling to hover in break-even territory.
Gold for April delivery rose another $11.70, or 0.9%, to $1,358.40 an ounce in electronic trade, while May silver added 36 cents, or 1.7%, to $21.17.
A day earlier, gold scored its second-straight advance as worries over Russia’s standoff in Ukraine and fears of a slowdown in China drew buyers to the perceived safety of the precious metal.
“Investors are meticulously watching on how long gold will sustain its rally until we see a dramatic drop in prices amid easing tensions in Ukraine,” Simple Sahni of Heraeus Metals wrote. “As long as nervousness, uncertainty and fear exist about the situation, gold should continue to see gains.”
Elsewhere in metals trading, April platinum rose $9.10, or 0.6%, to $1,473.70 an ounce, while June palladium added a dime to $770.60.
Copper has been in focus this week due to its abysmal performance of late. The commodity is by far the worst performer among all precious and base metals, with a drop of almost 10% this year.
However, Barclays believes the worst is likely over, or at least close to it.
On Wednesday, high-grade copper for May delivery remained flat at $2.95 a pound.
Source : Marketwatch
