Gold rose $0.50 on Wednesday to trade at $1,307.50 per ounce, according to Reuters. The metal found a boost from continued tensions in Ukraine and the Middle East, but also felt the pressure of rising stock markets. The summer season is also historically quiet for precious metals trading, and physical demand from Asia is weak. Both of these factors make a sharp rise in price unlikely.
“Bullion slipped lower alongside the VIX volatility index as risk sentiment improved and equities gained,” VTB Capital analyst Andrey Kryuchenkov told Reuters. “This suggests that last week’s safe-haven buying had run out of steam, being the key driver lately.”
U.S. gold futures for August delivery rose $2.40 to trade at $1,308.70 an ounce.