Gold ends at six month high

Tensions in Ukraine and a pullback for equities markets impact prices

Bullion prices ended substantially higher on Wednesday, 12 March 2014. Gold prices ended the U.S. day session with solid gains and hit a six-month high as more safe-haven buying and an increasingly bullish posture prompted buying interest. Gold futures rallied on Wednesday to mark their highest settlement since September, buoyed by tensions in Ukraine and a pullback for the equities markets linked to concerns over a slowdown in China's economy.

Gold for April delivery rose another $23.80, or 1.8%, to settle at $1,370.50 an ounce on the Comex division of the New York Mercantile Exchange, its third-straight session climb.

May silver jumped 54 cents, or 2.6%, to $21.36 an ounce.

The Russian troop occupation of Ukraine is still a serious concern among traders and investors at mid-week. This coming weekend could be pivotal in this geopolitical crisis. A referendum from Crimean citizens on secession is scheduled for Sunday, and that could be the next flashpoint in the region. The Group of Seven nations was set to release a statement on Wednesday to reiterate its solidarity regarding opposing Russia's invasion of Ukraine.

U.S. economic data released Wednesday was again light and did not impact the markets. Economic data was limited to the weekly MBA Mortgage Index, which fell 2.1% to follow last week's increase of 9.4%

In other news on Wednesday, industrial production in the European Union fell by 0.2% in January, from December, and was up 2.1% year-on-year. The decline in EU output was unexpected and could have an influence on the European Central Bank's monetary policy. The ECB has been battling tepid EU economic growth and deflationary concerns with a very stimulative monetary policy.

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