08.08.201401:03:00UTC+00Longest weekly decline set to end for gold

Gold is on track to finish the week on a strong note by putting an end to its longest weekly losing streak in almost a year behind unrest in Ukraine and the Middle East.

Spot gold was trading down from yesterday’s close of $1,312.63 at a price per ounce of $1,310.88 mid morning Singapore time. Prices gained for the third consecutive day yesterday to mark its longest winning streak in nearly a month. The precious metal reached its highest price per ounce of since July 22nd of $1,314.56 yesterday behind an announcement from Russia that it will be banning food imports into the country as a response to sanctions imposed by the US and the European Union.  Gold has risen by 1.3% this week so far setting in up to end a three week decline.

Bullion with a delivery date in December is on track to record a 1.4% gain this week. It traded at $1,312.30 per ounce today after closing at $1,312.50 yesterday in New York’s Comex. Assets listed under the largest gold backed exchange traded product, the SPDR Gold Trust, were unchanged.

Both the situation in eastern Europe and the ongoing violence in the Middle East have contributed greatly to gold’s recovery this year after its three decade worst fall in 2013. Russia is additionally considering prohibiting aircraft from the rest of Europe and North America to fly over Siberia. In the Middle East, the latest round of negotiations between Israel and Hamas broke down amidst a three day truce prompting threat from both sides while Islamist militants have taken control of Iraq’s largest dam.

Australia & New Zealand Banking Group Ltd’s head of commodity research says that, “Heightened geopolitical tensions supported an ongoing bid for safe-haven assets.” He attributed the rise of gold to investors becoming risk aversive due to political uncertainty around the world.

Meanwhile, spot silver is headed for its longest period of decline since November with a fourth consecutive weekly drop looking likely. It traded at $19.9575 per ounce from yesterday’s $19.9671.

Platinum is on track to end its losing streak at three weeks despite being down 0.1% today to $1,477.50 per ounce while palladium is on its way to record a third straight week of losses with prices unchanged at $856 per ounce.