Gold recovers as Ukraine weighed against rates

LONDON: Gold today recovered from five-week low as investors weighed the crisis over Ukraine against the outlook for higher US interest rates.

Gold added 0.2 per cent to $1,314.10 an ounce. It reached $1,305.02 yesterday, the lowest since February 14. Silver also rose 0.3 per cent to $20.05 an ounce, after reaching a six-week low of $19.88 yesterday.

Bullion dropped 3.5 per cent last week as US Federal Reserve Chair Janet Yellen said the central bank's debt-buying program may end this year.

Fed Bank of Atlanta President Dennis Lockhart said he expects interest rate increases in the second half of next year.

US President Barack Obama warned Russian President Vladimir Putin yesterday that Russia would face more sanctions if it moved further into eastern Ukraine after its annexation of Crimea.

Bloomberg