Gold retreats for the second day from the six months high amid the vote of Crimea, 60% of Crimea’s population voted for the independence from Ukraine, and they added their wellness to be a part of Russia. This morning, the Russian president Vladimir Putin declared the Russian situation and their respect for the Crimean wellness to be included in the Russian lands a day after the U.S. and European Union imposed limited sanctions on some people linked to the annexation of the Ukrainian territory. Gold extended a decline from a six-month high as speculation that the Federal Reserve will continue cutting stimulus curbed demand for the precious metal as a store of wealth. Silver fell. Gold advanced 13% this year as turmoil in Ukraine and signs of slowing economic growth increased demand for haven assets. Prices rebounded from the biggest annual slump since 1981 even as the U.S. central bank started to scale back asset purchases. Data released on Monday showed U.S. industrial output rose in February by the most in six months. The Fed begins a two-day meeting today (Tuesday, March 18th).
Breaking the level of $1,360.00 per ounce, bullion for immediate delivery declined by 3.0% during the last two days from the six months high of $1,387.6 per ounce to be traded at $1,357.70. Futures for April delivery declined by 2.5% to $1,358.00 per ounce, just before the two days Fed meeting begins.