Tags: gold | Russia | Ukraine | rates

Gold Hits Skids Amid Talk of Higher Rates, Easing Ukraine Fears

By    |   Friday, 28 March 2014 12:39 PM

Gold fell to a six-week low Friday, just two weeks after hitting a six-month high.

Jitters about emerging markets, global economic growth and Russia's intervention in Ukraine had boosted the precious metal.

But now signs of improved U.S. economic performance, talk of higher U.S. interest rates and receding fears about Ukraine are pushing gold back down.

Editor's Note: New Warning — Stocks on Verge of Major Collapse

April gold futures traded at $1,292.40 an ounce on the Comex Friday around midday.

As for the U.S. economy, news Friday that consumer spending rose 0.3 percent in February helped push the Standard & Poor's 500 Index within 1 percent of its record high.

"With everything that has come out in the last few weeks, it doesn't seem like gold is going to fare so well," Dan Pavilonis, a senior commodities trader at RJO Futures, told The Wall Street Journal. "People see the stock market near its highs, and they think, 'Why invest in gold?' "

Gold gained 15 percent from the beginning of the year until March 14, but has since slid 7 percent. The rally "was a nice hope, but it didn't really pan out," Rob Haworth, senior investment strategist at U.S. Bank Wealth Management, told The Journal.

Others express a bearish outlook. "Market participants over the past days have started to look back at economic fundamentals and focus less on Russia, Crimea," Credit Suisse analyst Karim Cherif told Reuters.

"You will probably see prices continue to slowly slide downward and unless you see renewed concern about the economic side or Russia, which doesn't seem to be the case, prices should fall."

Editor's Note: New Warning — Stocks on Verge of Major Collapse

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Gold fell to a six-week low Friday, just two weeks after hitting a six-month high.
gold,Russia,Ukraine,rates
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2014-39-28
Friday, 28 March 2014 12:39 PM
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