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Gold rises in price on concerns about escalating tensions around Ukraine and expectations expand stimulus measures in Europe.
" Geopolitical risks continue to support gold - said analyst Kitco Metals Inc. Peter Haag . - Uncertainty about what will happen in Ukraine, Europe and the intention to strengthen the monetary stimulus contribute to buying precious metals ."
In recent months, the conflict between Russia and Ukraine has been supporting gold prices , as concerns over the potential deterioration of the situation prompted some investors to seek refuge in the precious metals markets . Nevertheless , the lack of noticeable escalation of political tensions kept gold prices in the range of $ 60 with a width of the end of March . Futures range from highs at 1331 dollar to lows near 1268 dollars.
Support gold prices also provided statistics on producer prices in the U.S.. U.S. inflation index rose sharply last month , reflecting higher prices for some goods and services after a long period of weakness.
The Labor Department said that the producer price index, which measures changes in the prices of firms received for their goods and services , rose a seasonally adjusted 0.6% in April, compared with an increase of 0.5 % in March. We add that the last increase was the highest since September 2012 .
Excluding volatile components, namely food and energy , producer prices rose in April by 0.5% , compared with 0.6 % in March. Economists had forecast an increase of 0.2 % in both indexes.
The report says that inflation may depart from historically low levels. Add that, compared with the previous year as a whole , producer prices rose 2.1 % in April , registering the largest annual jump since March 2012 .
The cost of the June gold futures on the COMEX today rose to a high of $ 1309.20 .
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