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Komfie Manalo, Opalesque Asia: Geo-political risks brought about by the escalating violence in Ukraine have pushed the price of gold up, with investors going into this precious metal to protect their portfolios. However, hedge funds and speculators remained cautious against buying this metal because of America's recovering economy, reports said.
Money managers reduced to the minimum their net-long position in bullion to since mid-February until the week ended April 29, Bloomberg said. A report on a stronger U.S. jobs which signaled the improvement of the labor market has earlier caused gold prices to tumble to $1,272 an ounce.
According to Donald Selkin, chief strategist at National Securities Corp. in New York, "because of the better longer-term economic outlook, some investors don’t want to own gold," adding that a "lot of people think the Fed will keep tightening and they’ll raise rates sooner than later."
Some Investors, however, turned to the geo-political issues between Ukraine forces and pro-Russia activists and focusing on the risks, went into gold. Closing at a three-week high, gold on Friday rose by $19.50 or 1.5% selling at $1, 302.90 a troy ounce on Comex division of the New York Mercantile Exchange.
"Geo-political risk is on the minds of everybody and going into the weekend, investors went into gold," Rich Ilczys...................... To view our full article Click here
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