NEW YORK/LONDON: Gold hit a one-month low yesterday after robust economic data from the United States, China and the euro zone deterred investors from safe-haven assets, even as tensions simmered in the Middle East and Ukraine.
Prices for the yellow metal fell 1 percent to below $1,300 an ounce as the dollar and stock markets rose on surprisingly low weekly jobless claims and robust corporate earnings out of the United States.
Data from Europe showed the services sector in the 18-member euro zone performing better than any forecast from 39 economists in a Reuters poll.
All that diverted investor attention from the clashes in Gaza between Hamas and Israel, as well as the tensions in the Crimean region after the sanctions on Russia and the downing of a Malaysian passenger jet, that sent bullion rallying last week.
“To be fair, I think some people have a right to be disappointed that the stresses around the world haven’t led to a continued rise in the price of gold,” said Adam Hewison, president at Marketclub.com in Annapolis, Maryland. “We’re probably in oversold territory right now where gold is concerned, but we also seem to be pulling into an area between $1,290 and $1,280 that should offer some support to the market.”
REUTERS
