Gold futures rose to a two-week high as a decline in equities boosted demand for alternate investments.
The Standard & Poor’s 500 Index fell as much as 0.6 percent, reversing an earlier advance, amid concern that escalating tensions between Russia and Ukraine will hurt the global economic recovery. More sanctions may be announced if Russia doesn’t change course in Ukraine, Jason Furman, chairman of the White House Council of Economic Advisers, said today.
“The weakness in equities because of uncertainty in Ukraine is pushing gold higher,” Tom Power, a senior market strategist at RJO Futures in Chicago, said in a telephone interview. “Some money is flowing into gold from equities.”
Gold futures for December delivery advanced 0.4 percent to $1,313.20 an ounce at 12:24 p.m. on the Comex in New York. Earlier, the price reached $1,315.50, the highest for a most-active contract since July 22.