Gold prices gain in Asia on events in the Ukraine
Gold futures jumped more than 1% on Friday, as growing concerns over the conflict in eastern Ukraine overshadowed stronger than expected U.S. jobs data.
Comex gold prices ended the week with a gain of 0.16%, or $2.10, the second consecutive weekly advance, as demand for safe haven assets strengthened amid intensifying tensions between Russia and Ukraine.
Ukraine's army and pro-Russian rebels continued to skirmish on Friday, stoking fears that the crisis will develop and drag the U.S. deeper into the standoff.
The United Nation’s Security Council met about Ukraine on Friday in an emergency session, while U.S. President Barack Obama threatened to slap fresh sanctions on Russia if Moscow disrupts Ukrainian elections scheduled for May 25.
The West is accusing Russia of leading a separatist revolt in eastern Ukraine after it annexed Crimea last month.
Gold, seen as a safe haven investment, usually benefits from geopolitical turmoil.
The Labor Department reported Friday that the U.S. economy added 288,000 jobs in April, well above expectations for jobs growth of 210,000. The U.S. unemployment rate dropped to a five-and-a-half year low of 6.3%, compared to expectations for 6.6%.
Earlier in the week, preliminary data showed that U.S. gross domestic product grew at an annual rate of just 0.1% in the first three months of the year, well below forecasts for an expansion of 1.2%.
Despite the sharp slowdown in growth the Federal Reserve said Wednesday it would reduce its bond purchases to $45 billion a month. The Fed also said interest rates would remain on hold at record lows for a "considerable time" after the bond-buying program ends later this year.
In the week ahead, investors will be looking ahead to Monday’s report on U.S. service sector activity and Wednesday’s testimony by Fed Chair Janet Yellen on monetary policy and the economy.
Data from the Commodities Futures Trading Commission released Friday showed that hedge funds and money managers slightly decreased their bullish bets in gold futures in the week ending April 29.
Net longs totaled 89,954 contracts, down 0.68% from net longs of 90,572 in the preceding week.
Silver for July delivery rose 0.06% to 19.557 a troy ounce. Copper for July delivery rose 0.32% to $3.075 a pound.
Source: http://www.investing.com
