Gold holds ground on softer dollar, Ukraine tensions

Singapore: Gold was little changed on Wednesday as a weaker dollar and safe-haven bids triggered by simmering tensions in Ukraine offset the influence of weak physical demand.

Fundamentals

Spot gold was trading nearly flat at $1,308.21 an ounce, after slipping 0.2 per cent on Tuesday. Before that, the metal had gained about 2 per cent in as many sessions.

Tuesday was generally quieter than past days in most of eastern and southern Ukraine, but violence flared at dusk in the eastern port of Mariupol, where a spokesman for pro-Moscow militants told Russia's Itar-Tass news agency that one person was killed and three wounded in an attack on a checkpoint.

Both sides have been burying their dead as Ukraine slides further towards war, with supporters of Russia and of a united Ukraine accusing each other of tearing the country apart.

Periods of economic and political uncertainty generally tend to burnish gold's appeal as a safe-haven investment. Physical demand in top buyer Asia and elsewhere has been weak due to the volatility in prices.

Impala Platinum said that if a 15-week strike continued at its South African operations it would have to cut supply to clients to 40 percent of demand over the next three to four months.