Gold futures rose on Friday, trimming a weekly drop, as the European Union followed the United States in imposing further sanctions on the Russian Federation, which urged market players to look for safe haven assets, such as the precious metal. Meanwhile, copper futures distanced from the weakest level since July 2010, while silver rebounded from a one-month low.
On the Comex division of the New York Mercantile Exchange, gold futures for settlement in April traded at $1 338.90 per troy ounce at 12:33 GMT, up 0.63% on the day. Prices shifted in a daily range between $1 343.00 an ounce and $1 329.70 an ounce.
Prices have retreated from a six-month high of $1 392.60 an ounce on March 17 as turmoil over Ukraine left Russia and the West involved in their worst conflict since the end of the Cold War. The precious metal was set to drop 3.2% this week, for the first time since the week ended January 31st.
The European Union added 12 names to its list of Russians and Ukrainians penalized with asset freezes and travel bans, which brought the total number to 51 Russian and Ukrainian politicians and military commanders sanctioned by the currency bloc. This decision came one day after the United States imposed sanctions on 20 Russian officials and business leaders, which were said to have links with Russian President Vladimir Putin.
In addition, Fitch and Standard & Poor’s ratings agencies reduced Russia’s credit rating outlook to negative, which boosted demand for gold as a store of value.
Meanwhile, on the Comex division of the New York Mercantile Exchange, copper futures for settlement in May rose by 1.6% to trade at 2.973 a pound by 12:34 GMT. Prices shifted in a daily range between $2.979 and $2.917 a pound. On March 19, prices touched $2.877 a pound, the weakest level since July 2010.
Copper futures lost as much as 2% yesterday, after the Federal Reserve revised its forecasts, showing more policy makers predicted the main interest rate, now close to zero, would increase at least to 1% by the end of next year and 2.25% by the end of 2016, higher than previously forecast.
Policy makers trimmed the bond-buying program by another $10 billion to $55 billion per month. Moreover, Federal Reserve Chair Janet Yellen, said that the first increase in borrowing costs should come “around six months” after the end of the program, which will be probably some time next fall.
Elsewhere on the Comex, silver futures for May delivery rose 0.17 percent to trade at $20.465 an ounce by 12:35 GMT. Yesterday, the price touched $20.142 an ounce, the weakest level since February 13. Platinum futures for April delivery added 0.31 percent to $1 439.20 an ounce. The metal snapped four straight sessions of declines, the longest losing stretch in six weeks. Palladium futures for June delivery advanced 2.84 percent to $739.80 an ounce. On March 14, the price reached a one-year high of $787.60 an ounce as tension between the largest palladium producer Russia and Ukraine escalated.
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