Precious metals end on a firmer note

Gold moves back above $1,300

Bullion prices on Wednesday, 06 August 2014 shrugged off its recent weakness and gold moved back above $1,300 as Ukraine fears cast a shadow over the equity markets.

Gold for December delivery rose $22.90, or 1.8%, to $1,308.20 an ounce.

September silver gained 19 cents to $20.02 an ounce.

There is renewed attention on the Russia-Ukraine crisis at mid-week. Reports said Russian president Putin is getting ready to retaliate with its own sanctions against the West after his country has been slapped with economic sanctions recently.

In other news Wednesday, the yield on the German five-year bond (the Bobl) dropped to a record low Wednesday, at 0.28%, down from 0.33% last month. The record-low German bond yield is another clue of the heightened risk aversion presently in the market place.

Italy's GDP was reported down 0.2% in the second quarter from the first, and down 0.3% year-on-year. This means Italy's economy has slipped back into recession, which is another bearish clue for the collective European Union economy.

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