Singapore: Gold dipped on Friday after two days of gains, but remained on track to snap a three-week losing streak as geopolitical tensions over Ukraine lift the metal's safe-haven appeal.
Fundamentals
Spot gold slipped by 0.2 per cent to $1,310.16 an ounce, after gaining 0.6 per cent on Thursday, when it climbed to $1,314.40 - its highest since July 22.
The metal has risen 1.3 per cent for the week, its first increase in four weeks. US gold also gained 1.3 per cent for the week and was headed for its best week in seven. Gold has been boosted by risk-aversion sentiment in the market, after US and European equities slumped fearing a worsening of tensions between Russia and the West.
Moscow banned imports of most food from the West on Thursday in retaliation against sanctions over Ukraine, a stronger than expected measure that isolates Russian consumers from world trade to a degree unseen since Soviet days.
NATO's secretary general, visiting Kiev in a show of support for Ukraine, called on Russia to pull back from the brink of war against its neighbour. The Western military alliance says Moscow has massed troops on the border in preparation for a possible ground invasion.
The European Central Bank warned that the conflict in Ukraine poses a serious risk to the bloc's economy. Tensions elsewhere also helped gold's rise. Islamist militants surged across northern Iraq toward the capital of the Kurdish region on Thursday, sending tens of thousands of Christians fleeing for their lives, in an offensive that prompted talk of Western military action.
In gold mining news, Newmont Mining Corp Chief Executive Gary Goldberg said on Thursday he was open to resuming discussions about a potential merger with Barrick Gold Corp but had not heard from the company since April.
