Gold Holds Below $1,300; U.S. Economy Weighed Against Ukraine

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Gold held below $1,300 an ounce as investors weighed the outlook for U.S. monetary stimulus against unrest in Ukraine. Assets in exchange-traded funds backed by platinum and palladium climbed to records.

Gold fell 28 percent last year on expectations the Federal Reserve will reduce bond purchases as the economy improves. Prices rebounded 7.6 percent this year partly on tension between Ukraine and Russia. It��s Memorial Day in the U.S.

Gold for immediate delivery dropped 6 cents, or less than 0.1 percent, to $1,292.55 an ounce today in London, according to Bloomberg generic pricing. Prices dropped 0.1 percent on May 23 after sales of new homes in the U.S. increased the most since October.

Futures for August delivery rose 0.1 percent to $1,292.70 an ounce on the Comex in New York. Investors cut their net-long positions on gold for a second week to 90,358 contracts in the week ended May 20, U.S. Commodity Futures Trading Commission data show.

Source : Bloomberg