2014.08.1300:56:58UTC+00Gold approaches highest in 3 weeks

Gold maintained prices at a three week high today as investors assessed the impacts of the latest round of fighting in Gaza and the relations between Ukraine and Russia against forecasts for the US’s economy and currency.

Spot gold traded at a price per ounce of $1,309.12 mid morning Singapore time just below yesterday’s close of $1,309.51. It reached its highest level since July 18 of $1,322.76 on August 8th when air strikes were approved by US president Barrack Obama for the first time. Gold with a delivery date in December had a price per ounce of $1,310.10 in New York’s Comex, down from yesterday’s $1,310.60. Holdings in the SPDR Gold Trust were constant after falling last week to the level where it ended at last year.

Uneven economic recovery around the world as well as global unrest centered on the regions of Ukraine, Iraq, and Gaza has boosted demand for gold and spurred its value to rise by 8.9% this year so far. In Germany, investor confidence sank to its lowest level in two years which caused the euro to fall to a nine month low against the US dollar. Meanwhile, the Ukrainian government is deciding whether to allow Russian aid trucks entry into rebel territory and Israel is readying another assault on Gaza.

Analyst Yang Xi from Hangzhou, China’s Yongan Futures Co. says that, “Geopolitical safe-haven demand has triggered higher gold prices recently.” The analyst added that currently diverging monetary policies of advanced economies may provide another boost for the precious metal despite demand in China, the world’s top user of gold, weakening.

Economic data set to be released today include a report expected to show an increase in retail sales in the US alongside rise of The Bloomberg Dollar Index to a five month high. Indicators of a strengthening economy is believed to put pressure on the Federal Reserve to end stimulus and raise interest rates originally designed to jump start growth.

Spot silver was up from yesterday’s $19.9227 per ounce to $19.9463 while platinum declined by 0.2% to a price per ounce of $1.465.75. Palladium was mostly unchanged at $877.50.