Gold was little changed on Wednesday following sharp overnight losses as safe-haven buying cooled on easing fears of imminent military action by Russia in Ukraine. Gold prices had gained nearly 2 percent on Monday to afour month high on increasing tensions between Russia and the West over Ukraine. Gold is seen as an alternative investment to high risk assets such as stocks at times of economic and geopolitical uncertainty. Gold is very sensitive to geopolitical tensions. That is not necessarily a good sign as the flow can change very quickly as and when there are developments in Ukraine, Some kind of pullback is very possible given the pricegains this year but in the short term it depends on the news flow. However it is advised that traders should be cautious, because all that is needed is for one itchy trigger finger to twitch, and things could get very messy, fastin the unlikely event of everyone suddenly deciding to get along, the downside is fairly limited. The upside however, in times of war/civil unrest, is pretty much unlimited. Events to look out for today in particular are ADP Non Farm Employment Change at 1.15pm GMT.
March 5, 2014 – Commodities News
Hot Asset For Today: Gold
Gold was little changed on Wednesday following sharp overnight losses as safe-haven buying cooled on easing fears of imminent military action by Russia in Ukraine. Gold prices had gained nearly 2 percent on Monday to afour month high on increasing tensions between Russia and the West over Ukraine. Gold is seen as an alternative investment to high risk assets such as stocks at times of economic and geopolitical uncertainty. Gold is very sensitive to geopolitical tensions. That is not necessarily a good sign as the flow can change very quickly as and when there are developments in Ukraine, Some kind of pullback is very possible given the pricegains this year but in the short term it depends on the news flow. However it is advised that traders should be cautious, because all that is needed is for one itchy trigger finger to twitch, and things could get very messy, fastin the unlikely event of everyone suddenly deciding to get along, the downside is fairly limited. The upside however, in times of war/civil unrest, is pretty much unlimited. Events to look out for today in particular are ADP Non Farm Employment Change at 1.15pm GMT.
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