Gold Hovers Near 8-Month Peak as Concerns Over Ukraine Return

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Gold prices rose on Thursday towards their highest levels in eight months this week as US Treasury yields fell, while reports of mortar fire in eastern Ukraine prompted investors to choose safe bullion.

And gold rose in spot transactions 0.4 percent to $ 1876.41 an ounce, hovering near its highest level since June, which it reached on Tuesday at $ 1879.48. And US gold futures rose 0.4 percent to $ 1878.40.

Russian-backed separatists in eastern Ukraine accused government forces on Thursday of opening fire on their territory four times in the past 24 hours. It is not yet clear how serious these accidents are.

The market is very sensitive to news about Ukraine and Russia, said Nicholas Frabel, global general manager at ABC Bullion.

And the US dollar returned to rise after reports of the attack, which prompted investors to worry about the outbreak of a wider war to search for safe havens.

Gold was also supported after the minutes of the US Federal Reserve’s meeting last month hinted that the bank would not take big steps towards tightening monetary policy, as the markets had feared.

As for other precious metals, the price of silver in spot transactions fell 0.1 percent to $23.53 an ounce, and platinum rose 0.7 percent to $ 1068.57, its highest level in three months, while palladium increased 1.8 percent to $ 2321.38.