Gold inches towards 4-month high as Ukraine spurs haven demand

London, March 11 – Gold today climbed toward a four-month high as the standoff between Russia and Ukraine spurred demand for a haven.

 

Gold rose 0.6 per cent to $1,348.39 an ounce. It reached $1,354.87 on March 3, the highest since October 30. Silver rose one per cent to $21.02 an ounce, after reaching 20.61 on Monday, the lowest since February 14.

 

Ukraine began military drills as Russian forces tightened their hold on the Crimean peninsula, where residents will have the choice of joining Russia in a March 16 referendum. Ukraine's prime minister prepared to meet US President Barack Obama and western nations threatened further repercussions if Russia failed to defuse tensions.

 

Bullion advanced 12 per cent this year, rebounding from the biggest annual drop since 1981, even as the Federal Reserve announced a $10 billion reduction to bond buying at each of its past two meetings, leaving purchases at $65 billion.

 

Fed Chair Janet Yellen said the central bank will probably maintain its strategy of trimming the stimulus programme. Global equities are within 1 per cent of a six-year high set last week.

 

TOI