Metal Commodities
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Gold futures settled lower on Wednesday, but spot prices
rose as a weaker dollar and lingering geopolitical tensions helped
offset selling pressure from a record rally in U.S. equities.
Spot gold was up 0.2 percent at $1,283 an ounce, while U.S. gold futures for December delivery underperformed spot, falling $1.80 on the day to close at $1,283.40 an ounce.
The dollar softened as traders focused on riskier assets, while speculation the European Central Bank will resort to monetary stimulus also triggered some interest in bullion, traders said.
Read MoreGold just part of a weatherproof portfolio: Pro
On Wednesday, Ukraine accused Russian forces of launching a new military incursion across its border, a day after the leaders of both countries agreed to work toward ending a separatist war in the east of the country.
Spot gold was up 0.2 percent at $1,283 an ounce, while U.S. gold futures for December delivery underperformed spot, falling $1.80 on the day to close at $1,283.40 an ounce.
The dollar softened as traders focused on riskier assets, while speculation the European Central Bank will resort to monetary stimulus also triggered some interest in bullion, traders said.
Read MoreGold just part of a weatherproof portfolio: Pro
On Wednesday, Ukraine accused Russian forces of launching a new military incursion across its border, a day after the leaders of both countries agreed to work toward ending a separatist war in the east of the country.
"The numerous sources of geopolitical crisis are evidently
preventing the gold price from slumping," said Eugen Weinberg, head of
commodity research at Commerzbank.
Read More How gold prices are defying the naysayers
He said gold was currently trading around a key technical support at its 200-day moving average near $1,285 an ounce, but a possible dollar rally and rising U.S. equities could still pressure bullion prices.
Read More How gold prices are defying the naysayers
He said gold was currently trading around a key technical support at its 200-day moving average near $1,285 an ounce, but a possible dollar rally and rising U.S. equities could still pressure bullion prices.
Gold was also supported after German consumer sentiment showed its biggest drop in more than three years.
Read MoreDraghi says ECB stands ready to adjust policy further
Also underpinning gold was ECB President Mario Draghi's call last week for more action on both the monetary and fiscal fronts.
Holdings of the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund and a gauge of investor demand, fell 0.4 percent to 797.09 tons on Monday from 800.08 tons on Friday.
—By Reuters
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