Gold Hits 8-Month High As Ukraine Tensions Remain Unresolved

Gold futures for April delivery on the New York Mercantile Exchange (COMEX) closed up $15.3, or 0.8%, at $1,871.5 an ounce on February 16, hitting an eight-month high, as the West believed that tensions in Ukraine had not resolved, allowing gold to escape again Insurance buyers favored; the dollar index fell 0.2%, with May silver futures rising 1.3% to $23.654 an ounce. April platinum futures on the New York Mercantile Exchange (NYMEX) rose 4.2% to $1,063.7 an ounce and June palladium futures rose 0.9% to $2,274 an ounce. Leigh Goehring, managing partner of research firm Goehring & Rozencwajg Associates, LLC., said the expectation that rising energy prices will drive inflation may become the main driving force for the next round of bulls in gold prices. Goehring said that the supply of the international oil market seems to be getting tighter and tighter, which may affect the overall market, including the prices of food and agricultural products. Gold will also be supported by inflation expectations.