XAUUSD Steady Around $1,307 Over the Downing of MH17 in Ukraine

by on July 23, 2014 10:16 am BST

Gold (XAUUSD) held above a three-day low at $1,307 as investors weighed tension over the downing of a passenger aircraft in Ukraine against the outlook for an improving US economy.

Prices have rebounded 9 percent this year partly as tensions in Ukraine and the Middle East spurred haven demand. The European Union yesterday threatened to restrict Russia’s access to capital markets and sensitive energy and defense technologies unless President Vladimir Putin expedites a probe into the downing of the Malaysian passenger jet.

Gold for immediate delivery added 0.2 percent to $1,309.19 an ounce by 9:49 a.m. in London. Prices fell to $1,302.08 yesterday, the lowest since July 17. Gold for December delivery increased 0.3 percent to $1,311.60 on the Comex in New York.

The dollar was little changed near a one-month high against 10 major currencies after data yesterday that showed U.S. home sales climbed to an eight-month high and before a report tomorrow that may show slowing European manufacturing. Bullion, which dropped 0.5 percent yesterday, slid 28 percent last year on expectations for reduced U.S. stimulus.