Gold is heading for a second month of gains, the longest such run since August, as concern that the U.S. recovery may be faltering and unrest in emerging markets boosted demand for a store of value. Gunmen occupied Ukraine’s Crimea regional parliament and raised the Russian flag as lawmakers in the capital meet to approve a new cabinet after last week’s ouster of Viktor Yanukovych as leader.
“Heightened geopolitical risks as tensions in the Ukraine mount are supportive of gold,should events in Ukraine deteriorate and involve neighboring countries, gold could benefit from increased safe-haven demand.
Gold for April delivery added 0.3 percent to $1,332.50 an ounce on the Comex in New York by 8:30 a.m., after climbing to as much as $1,345.60 yesterday, the highest for a most-active contract since Oct. 30. Futures trading volumes were about the average for the past 100 days for this time of day, according to data compiled by Bloomberg. Gold for immediate delivery was little changed at $1,331 in London.
Bullion has gained 11 percent this year, rebounding from the biggest annual decline in more than three decades, even as the U.S. Federal Reserve announced a reduction to asset purchases at its past two meetings.