Gold holds ground on softer dollar, Ukraine tensions

May 07 2014, 06:17 IST
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SummaryGold was little changed on Wednesday as a weaker dollar and safe-haven bids triggered by simmering tensions in Ukraine offset the influence of weak physical demand.

Gold was little changed on Wednesday as a weaker dollar and safe-haven bids triggered by simmering tensions in Ukraine offset the influence of weak physical demand.

FUNDAMENTALS

* Spot gold was trading nearly flat at $1,308.21 an ounce by 0027 GMT, after slipping 0.2 percent on Tuesday. Before that, the metal had gained about 2 percent in as many sessions.

* Tuesday was generally quieter than past days in most of eastern and southern Ukraine, but violence flared at dusk in the eastern port of Mariupol, where a spokesman for pro-Moscow militants told Russia's Itar-Tass news agency that one person was killed and three wounded in an attack on a checkpoint.

* Both sides have been burying their dead as Ukraine slides further towards war, with supporters of Russia and of a united Ukraine accusing each other of tearing the country apart.

* Periods of economic and political uncertainty generally tend to burnish gold's appeal as a safe-haven investment.

* Physical demand in top buyer Asia and elsewhere has been weak due to the volatility in prices.

* World no. 2 platinum producer Impala Platinum said that if a 15-week strike continued at its South African operations it would have to cut supply to clients to 40 percent of demand over the next three to four months.

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