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SINGAPORE — Gold stabilised near $1 310 per ounce yesterday as escalating tension over conflict in Ukraine and the Gaza Strip dented global risk appetite and burnished the metal’s safe-haven appeal.
Spot gold was little changed at $1 311,70 per ounce. It had gained as much as 0,6 percent in intraday trading on Monday, but failed to hold the gains and closed flat.
Asian stocks edged up in early trading on Tuesday, though the upside was capped by lingering concern about the Ukraine crisis and violence in Gaza, which pressured US yields and the dollar.

“Uncertainty in Eastern Europe and the Middle East should provide support for the metal,” Swiss precious metals trader MKS Group said in a note. Immediate support (is) at $1 310 and a solid break through $1 325-$1 326 (is) required for a continued move higher.”

The US, alarmed by escalating civilian bloodshed in an Israeli offensive in the Gaza Strip, took a direct role in efforts to secure a ceasefire on Monday, as the Palestinian death toll jumped to more than 500.

Despite growing calls for a halt to two weeks of fighting, violence raged on. Israel pounded the coastal strip, killing 28 members of a family in one strike, 11 people in an attack on a high-rise building and four in the shelling of a hospital, medics said. In Ukraine, tension continued to run high even as the remains of some of the nearly 300 victims of the Malaysian Airline plane downed over Ukraine were making their way to the Netherlands yesterday.

Western governments have threatened Russia with stiffer penalties for what they say is its backing of pro-Russian militia who, their evidence suggests, shot the plane down.

Markets are also eyeing upcoming data from the US to gauge the strength of the economy and its effect on the Federal Reserve’s monetary policy. – Reuters.