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Gold Unable to Profit from Geopolitical Tensions

May 13, 2014 at 4:40 by Vladimir Vyun

Gold lost value today as the rising dollar did not allow the precious metal to profit from the political crisis in Ukraine. Several eastern regions of the country held a referendum (called illegal by the United States and the European Union) about seceding from Ukraine. The regions voiced desire to join Russia after gaining independence.

Usually, gold profits from geopolitical tensions due to its role as a safe haven. Yet the dollar is also considered to be a safe investment option and it was outperforming gold in this role lately. Signs of positive developments in the US economy also helped the greenback to gain on the bullion.

June futures for delivery of gold lost $1.9 (0.15 percent) to $1,293.9 per troy ounce as of 4:35 GMT on COMEX today.

If you have any questions and comments on the commodities today, use the form below to reply.

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