Gold Rises to 8-Month High as Bond Yields Fall

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Gold prices rose in trading today, Thursday, to their highest level in 8 months, as Treasury yields declined, while reports of mortar fire in eastern Ukraine prompted investors to resort to gold bullion.

Spot gold rose 0.4% to $1,876.41 an ounce, approaching a June high of $1,879.48 hit on Tuesday, and US gold futures rose 0.4% to $1,878.40.

On Thursday, Russian-backed separatists in eastern Ukraine accused the Ukrainian government of firing into their territory four times over the past 24 hours, and it was not immediately clear how serious the incidents were.

The US dollar regained its strength after reports of the attack, which raised investors’ concern to expect a wider war that could negatively affect the markets.

gold prices found support after the minutes of the Federal Reserve’s meeting last month made it clear that the US central bank would not be more hawkish in terms of its monetary policy, as was previously expected.