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Gold prices rose sharply today , reaching in this three-week high , as the escalation of tensions in Ukraine boosted demand for safer assets . Also, add that overcoming the key resistance level is also supported .
Experts note that investors continued to monitor developments in Ukraine, because hostility between Kiev and Moscow remains at a high level. During the weekend in eastern Ukraine were clashes between the army and the Ukrainian pro-Russian forces , and this has raised fears that the crisis will intensify and will be drawn into a confrontation the United States. U.S. Secretary of State John Kerry on Sunday threatened new sanctions Russia if Moscow does not stop supporting separatists in eastern Ukraine .
The dynamics also continued to affect U.S. employment data , which were presented on Friday . They showed that the U.S. economy in April has created more jobs than in any month in the past two years . However, it was seen weaker profit growth and a reduction in working towards all able-bodied population .
As regards the situation in the physical market , the Chinese buyers were active during the night, dealers said .
" Chinese demand has improved slightly over the past two weeks , and the premium on gold on the Shanghai Gold Exchange broke out of negative territory, and were slightly up - at about $ 0.50 ," said in Standard Bank. "This suggests that the demand , especially from China , may improve when the price falls below $ 1,300 ."
It should also be noted that the weakness of investment puts pressure on gold in recent weeks. Stocks in SPDR Gold Trust fell by 2.70 tons - up to 782.85 tonnes on Friday , bringing the outflow for the week amounted to nearly 10 tons.
In addition, it was reported that on April 29 week ended fund managers cut net long positions in gold to the lowest level since mid-February. Volume products decreased in April by 25 percent, the steepest decline since November, and investments in gold ETFs fell to the lowest since 2009.
To date, the cost of the June gold futures on COMEX rose to a high of $ 1311.10 .
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