This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Gold Spikes as Plane Crash Stokes Speculation of Escalation in Ukraine Tensions

NEW YORK (TheStreet) -- Gold prices surged late Thursday morning after Ukraine's Interior Minister said rebels shot down a passenger plane carrying 295 people in the country.

Gold for August delivery at the COMEX division of the New York Mercantile Exchange was jumping $15.90 to $1,315.70 an ounce. The gold price traded as high as $1,318.60 and as low as $1,298.10 an ounce, while the spot price was spiking $22.40, or 1.7%.

The Interior Minister said rebels shot down a Malaysian airliner that crashed in the east part of the country, Bloomberg reported.

"That's absolutely why gold's higher, no question about it. We're a big believe in the buy the rumor, sell the fact ," Graham Leighton, a precious metals trader at Marex Spectron, said in a phone interview from New York. "I think people are using this as insurance."

Details on the incident were not yet clear. But the escalating violence between Ukraine and Russia since the first quarter of the year put support under the gold price as a safe-haven hedge against geopolitical tensions that could have wider implications on the region and the markets.

Graham said if investigations prove that the Malaysian plane crash wasn't linked to the Russia and Ukraine conflict, then gold prices could drop as quickly as they spiked. He added that prices likely will gain if reports confirm that there is a link.

-- Written by Joe Deaux in New York.

>Contact by Email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
IAU $11.46 -0.35%
SGOL $115.88 -0.22%
GLD $113.58 -0.22%
AAPL $94.99 -0.02%
FB $99.54 -0.21%


Chart of I:DJI
DOW 16,014.38 -12.67 -0.08%
S&P 500 1,852.21 -1.23 -0.07%
NASDAQ 4,268.7630 -14.99 -0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs