LONDON, Aug 11 (Reuters): Gold fell slightly on Monday, retreating from a three-week high as tensions between Ukraine and Russia eased and investors turned to rising European shares and some withdrew from exchange-traded gold funds.
Late on Friday, Russia's Defence Ministry said it had ended military exercises in southern Russia, which the United States had criticised as a provocative step in the Ukraine crisis.
Spot gold was down 0.1 per cent to $1,308.59 an ounce by 0947 GMT, after reaching a three-week high of $1,322.60 on Friday. U.S. gold futures for December delivery lost $1.40 to $1,309.50.
"I don't really see gold going above $1,350, because there is no real interest or incentive for funds or investors in ETFs to come back," Credit Suisse analyst Tom Kendall said.
"There is so much uncertainty about U.S. rates and monetary policy that there is no incentive for anyone to come back in a sizeable way to the gold market, particularly when the risk-off in equities we had (last week) wasn't particularly scary."
European stocks bounced back from a sharp two-week slide, tracking a rally on Wall Street. The dollar, which lost heavily against the yen last week after U.S. President Barack Obama authorised air strikes in Iraq, was up 0.1 per cent against a basket of currencies, boosted by steadier U.S. Treasury bond yields.
Gold down as Ukraine tensions ease
FE Team | Published: August 12, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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