Gold climbed back above $1,300 an ounce on Tuesday after fresh violence in Eastern Ukraine threatened to reignite a diplomatic clash between Russia and NATO, boosting the metal’s safe-haven appeal. The U.S. dollar moved lower during the day.
Protestors in the Ukrainian city of Donetsk seized government buildings and demanded a referendum to let the region break away from Ukraine and join Russia. The actions prompted a warning to Ukrainian authorities by Russia — which still has troops along its border with Ukraine — not to use violence against ethnic Russians in the area. In response, the U.S. threatened new and harsher sanctions against Russia if it intervenes in Eastern Ukraine.
Gold futures for June delivery rose 0.8% to $1,309.10 per ounce on Tuesday, according to CME Group. Gold prices were as high as $1,314.70 and as low as $1,296.80. Bullion closed in London at $1,311, according to BullionVault.
Silver futures for May delivery also increased 0.8% to settle at $20.06 per ounce. Tuesday’s high for silver was $20.18, while the low was $19.85.
Metal funds gained on Tuesday.
- The SPDR Gold Shares (GLD) added 0.9%.
- The iShares Gold Trust (IAU) rose 0.9%.
- The iShares Silver Trust (SLV) increased 0.5%.
Mining ETFs advanced during the day.
- The Market Vectors Gold Miners ETF (GDX) moved up 2.6%.
- The Market Vectors Junior Gold Miners ETF (GDXJ) jumped 4%.
- The Global X Silver Miners ETF (SIL) added 1.7%.
Gold stocks mostly improved on Tuesday.
- Agnico-Eagle Mines (AEM) gained 2.8%.
- Barrick Gold (ABX) rose 2.5%.
- Eldorado Gold (EGO) increased 2.2%.
- Goldcorp (GG) added 1.9%.
- Kinross Gold (KGC) fell 0.7%.
- Newmont Mining (NEM) advanced 2.1%.
- NovaGold Resources (NG) surged 5.1%.
- Yamana Gold (AUY) moved up 1.2%.
Silver mining shares climbed during the day.
- Coeur d’Alene Mines (CDE) rose 1.6%.
- Hecla Mining (HL) gained 2.3%.
- Pan American Silver (PAAS) added 2.4%.
- Silver Wheaton (SLW) increased 1.1%.
- Silver Standard Resources (SSRI) jumped 4.3%.
As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault contributed to this report.