Tuesday, August 19, 2014

Gold rose 8.4 percent

Gold rose for the first time in three days in New York as investors weighed the standoff over Ukraine against a stronger dollar. Palladium was near a 13-year high.
Gold rose 8.4 percent this year partly as unrest helped fuel demand. Ukrainian government forces took control of one of four districts in the pro-Russian separatist stronghold of Luhansk, as the Red Cross said its working toward agreement on details of a safe-passage plan for a Russian aid convoy. Talks on a halt to the fighting stalled yesterday. Israel and Palestinian militants agreed to extend their five-day truce for 24 hours in another attempt to reach a long-term accord.
The dollar was near a nine-month high versus the euro amid signs of economic recovery that support the case for the Federal Reserve to raise interest rates. The Fed releases minutes of its July 29-30 policy meeting tomorrow and Chair Janet Yellen is due to deliver a speech on Aug. 22 at an annual symposium in Jackson Hole, Wyoming. Prospects for higher borrowing costs may support the greenback, and gold usually moves inversely to the currency.