2014.08.0700:59:11UTC+00Gold maintains largest gain behind Ukraine tension

Gains derived from an increase in demand due to rising tensions in Ukraine stayed with gold after it advanced by the highest in three weeks.

Spot gold increase to a price per ounce of $1,308.13 showing a climb of 0.2% and was trading mid morning at $1,306.87 Singapore time. It climbed by the largest margin since July 17 of 1.3% yesterday. The precious metal will mark its longest winning streak in a month should it advance today.

Gold with a delivery day in December drew back slightly to a price per ounce of $1,308 from yesterday’s close of $1,308.20. Futures jumped by 1.8% on Wednesday to achieve its biggest single day gain since June 19. Assets included under the largest gold backed exchange traded product, the SPDR Gold Trust shrunk by 0.3% to 797.65 metric tons on that day as well.

The metal declined by 28%, the largest drop in three decades, in 2013 when the Federal Reserve first indicated it will begin reducing its asset buying program. It has recovered by 8.8% so far this year due to the escalation of global unrest.  The US, Poland, and NATO have raised concerns over the buildup of Russian troops for a possible entry in Ukraine while Russian President Vladimir Putin has banned the importation of some food items as a response to international sanctions.

Analyst Lv Jie feom Cinda Futures Co. says that, “Gold has received support as geopolitics return to headlines.” In Shanghai, China, the largest source of the demand for gold, its benchmark spot contract saw its volume climb to a weekly high of 17,687 kilograms. Lv predicts that gold buying may cease due to prices going above $1,300.

Spot silver continued yesterday’s climb and advanced by 0.2% today to a price per ounce of $20.0703. Platinum for immediate delivery crept up by $2.19 to $1,465.50 per ounce while palladium gained 0.2% to $852.16 per ounce.