Gold, silver, oil and wheat surged today after confirmaton that a Malaysian passenger airliner was shot down over the Ukraine. The tragedy is set to be used by opposing sides as a stick to beat each other with and inflame an already very tense geopolitical situation.
Finviz
Gold surged 1.85% and is on track for its best day in almost a month. Stock markets around the world extended losses while safe-haven assets rose following the news.
U.S. stocks fell and risk aversion returned to markets on speculation that the incident could lead to an escalation in millitary confrontation in the Ukraine and tensions with Russia. The VIX (VIX), which measures volatility and is sometimes dubbed the "Fear Gauge", shot up as much as 17%.
Gold was already higher for a second-day prior to news of the tragedy. Geopolitical tensions with Russia and in the Middle East are leading to haven demand and there are bargain hunters buying gold bars [8] and coins at the levels.
Finviz
Gold's 14-day relative strength index (RSI) is back to 49 this morning from its low for the week of 42.8 on Tuesday. Prices are holding above their 100-day simple moving average at $1,303/oz. Futures trading volume was 23% below the average for the past 100 days for this time of day.
Palladium prices have hit their highest since February 2001 this morning at $882.20/oz. Russia, the world’s largest producer of palladium had another round of U.S. sanctions imposed on them yesterday, over what Washington says is Moscow's failure to curb violence in Ukraine.
Russia’s palladium exports to Switzerland reached an 11 month high in April, Swiss Federal Customs Administration data show. Shipments then fell 29% in May but were still at the second-highest level in a year. Russia has reduced sales from government stockpiles but typically exports palladium to Switzerland for storage and refining.
Palladium has surged 23% so far this year as a South African mine strike cut output and there are concerns about Russian supplies.
Gold imports by India jumped 65% to $3.12 billion in June from $1.89 billion a year earlier, after the central bank allowed more banks and traders to buy bullion overseas, the Commerce Ministry said yesterday. June imports were estimated at about 74 metric tons.
IMPORTANT NEWS
Gold Fix Banks Said to Propose Changes to Pricing Process
[9]Gold Rises From Three-Week Low as Palladium Reaches 13-Year High
[10]Gold Edges Up After Three Days Of Losses
[11]Gold Rebounds On Bargain Hunting After Two-Day Tumble
[12]Gold Rebounds From A Three-Week Low As India Imports Gain
[13]IMPORTANT ANALYSIS
Gold is Still Looking Good – But Watch This Price Level Closely
[14]Pension Funding Gaps Cause Turmoil Throughout America
[15]GLD Worries About Failure of Unallocated Gold
[16]Which Way Is Inflation Blowing? Watch Commodities
[17]ING: Future Bitcoin Protocol Should Include Central Bank Functions [18]
** Gold Bars At Just 3% Until August 1st [8] **