Gold heads for biggest gain in 4-weeks on jet crash reports
The US and EU imposed sanctions on Russian banks, energy and defence firms in the latest attempt to pressure the country to halt interference in Ukraine
New York: Gold prices headed for the biggest gain in four weeks after Ukraine said rebels shot down a Malaysian jet carrying 295 people near its border with Russia.
The Boeing 777 flight between Amsterdam and Kuala Lumpur was hit by a missile and went down near the eastern town of Torez, Ukrainian interior minister adviser Anton Gerashchenko said on his Facebook page. Gold rose earlier as the US and the European Union imposed the most aggressive sanctions to date on Russian business.
Bullion rallied about 10% this year, beating gains for commodities, equities and Treasuries, as violence in Iraq and hostilities between Ukraine and Russia boosted demand for a haven asset. Prices also rose as the Federal Reserve has signaled interest rates will stay near a record low.
The news of the jet crash heightened concerns over the tensions in Russia and Ukraine, and definitely triggered safe-haven buying, Chris Gaffney, a senior market strategist at EverBank Wealth Management in St. Louis, said in a telephone interview.
Gold futures for August delivery rose 1.8% to $1,323.10 an ounce at 12:03 pm on the Comex in New York, heading for the biggest gain since 19 June.
Palladium futures for September delivery climbed 1.4% to $889.45 an ounce on the New York Mercantile Exchange, after touching $890, the highest since February 2001.
Russia is the largest supplier of the metal, which along with platinum is used in automobile pollution-control devices.
Silver and platinum also rose in New York trading. BLOOMBERG
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