Gold closes up 0.5%

Gold has risen half a per cent as some investors seek to protect their portfolios in the face of political turmoil in Ukraine.

Gold futures have risen, as some investors, citing the recent political turmoil in Ukraine, seek to fireproof their portfolios.

Gold for April delivery, the most active contract, on Friday rose $US6.70, or 0.5 per cent, to settle at $US1,323.60 a troy ounce on the Comex division of the New York Mercantile Exchange.

Gold's gains come as some investors show a renewed interest in the precious metal's role as a haven.

Gold prices tumbled 28 per cent in 2013, as a brighter global growth outlook lured many investors into riskier assets such as stocks. But some investors are giving gold a second chance this year in the wake of concerns about financial stability in emerging markets and the recent politically motivated violence in Ukraine.

President Viktor Yanukovych and opposition leaders signed a deal on Friday aimed at ending Ukraine's deadly political crisis by curtailing the president's powers and holding early presidential elections. The accord could pull Ukraine back from the brink of a broader civil conflict.

"You look around the globe and you see turmoil," said George Gero, a senior vice president with RBC Capital Markets Global Futures.

Gero added that Friday's accord was the second truce called between the Ukrainian government and antigovernment protesters, so investors are likely to proceed with caution even though a deal has been reached.

"People are going to be very careful about the devil in the details," he said.

Gold traders have also been lured into the market as futures have spent a week trading above a widely-watched technical indicator that separates long-term bullish and bearish trends. Gold prices breached their 200-day moving average on February 14, and continued to hold above that level despite losing ground in recent days. Gold hasn't traded above this level for more than a year.

Settlements (ranges include open-outcry and electronic trading):

London PM Gold Fix: $US1,323.25; previous PM $US1,316.25

Apr gold $US1,323.60, up $US6.70; Range $US1,315.90-$US1,327.90

Mar silver $US21.782, up 9.8 cents; Range $US21.575-$US21.975

Apr platinum $US1,427.90, up $US15.40; Range $US1,421.30-$US1,430.00

Mar palladium $US740.00, up $US3.70; Range $US734.25-$US742.00


2 min read

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Updated

Source: AAP


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