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China & Ukraine Continue Support Gold, Copper Recovers

March 14, 2014 at 20:09 by Vladimir Vyun

Gold continued to rally today on concerns about economic slowdown in China and the conflict between Russia and Ukraine. The trading week ends with nervousness among traders as it is unclear what outcome the referendum in Crimea on Sunday will bring and how Russia and Western countries will react. Gold is considered to be a safe investment and is usually bought in times of fears and uncertainty. Recently, the metal was behaving more like a general commodity, in other words a risky investment, but it looks like gold is yet again considered to be a safe haven.

Surprisingly enough, copper also managed to post gains. The metal is strongly tied to economic growth and usually performs poor in times of troubles. Yet it looks like investors believe that China will introduce measures to spur slowing growth. The industrial metal is still very weak and today’s rally may be nothing more than a small bounce in a bear market.

April futures for gold rallied $10.4 (0.76 percent) to $1,382.8 per troy ounce as of 20:08 GMT on COMEX today. May copper advanced $0.0275 (0.94 percent) to $2.9505 per pound.

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