Gold prices continued to grow

The gold futures continued to rise in the previous week amid the tensions between Russia and Ukraine, which increases the demand for safe investments. The contracts on the metal with delivery in April closed the Friday’s session with a growth of 0.62% to 1,381 USD per ounce, achieving an increase of 3.1% on a weekly basis. In this way the precious metal reached a sixth straight week of growth with regard to the investor interest in safer assets.

At the beginning of the new week the precious metal continues to increase its price, adding 0.3% to 1,384 USD per ounce. Yesterday was the referendum in Crimea, which unanimously decided Crimea to join the Russian Federation. This additionally speed up the growth of the gold price, as the investors continued to be scared from the political and economy situation in Central and Eastern Europe. Russia ordered the construction of new military exercises near the border with Ukraine during the last week, which move suggests that Moscow does not intend to abandon its plans to annex the Crimea despite the potential for the imposition of sanctions by the EU and USA.

Meanwhile, German Chancellor Angela Merkel warned for a possible “crash” if Russia did not abandon its intentions.

The interest for investors was also the latest data from China. The industrial production in the country grew with 8.6%, but this was below the forecasts for a rise of 9.5% in February. A month earlier was achieved growth of 9.7%. The retail sales in China even widened with 11.8% during the month, remaining below the expected growth rate of 13.5%, while in January was achieved increase of 13.1%. Moreover, the investments in fixed assets rose with 17.9% in February compared with projected growth of 19.4%, while a month earlier the expansion reached 19.6%.

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