Los Angeles CA, July 18 (Tangible Investments) - by James O’Dell - Gold and Silver prices extended gains on Thursday with Gold adding $18.40 or 1.42 percent to close at $1,317.95 ounce while the Dow posted triple digit losses on the increasing geopolitical turmoil developing in Ukraine and the Middle East. Silver climbed $0.37 or 1.78 percent to close at $21.16 an ounce, while the Gold/Silver ratio fell to 62.28.
Precious metals prices soared Thursday on the news of a Malaysian passenger jetliner being shot down in pro-Russian held eastern Ukraine, less than 35 miles from the Russian border. All 298 people on board were killed in the tragic incident. Malaysia Airlines originally reported 280 passengers on board and a crew of 15, but later increased the number to 283 passengers to account for three infants.
The downing of the Boeing 777 has heightened concerns that the conflict in Ukraine could escalate now that further U.S. sanctions against Russia were announced on Wednesday. "The concerns are that Russia could do tit-for-tat. They could get angry and cut off oil or natural gas supplies or palladium supplies. Then all of a sudden we have shortages," said Phil Flynn, of Price Futures Group.
"Geopolitical risks at the moment are quite elevated," said Victor Thianpiriya, of ANZ. "The move overnight (in Gold prices) is warranted given the risks out there. In the near-term, we can certainly see some more upside," he added. The United Nations Security Council, including Russia, a permanent member, will hold an emergency meeting on Friday to discuss the downing of the Malaysian jetliner.
Ukrainian aviation regulators, citing military operations against separatists in the area, closed the airspace over eastern Ukraine on Friday. The agency said the no-fly zone will be in effect in the Donetsk, Luhansk and Khakiv regions of eastern Ukraine.
Preserve your wealth and secure your retirement by making a tangible investment in physical Gold and Silver in 2014. Call Toll Free 1.800.741.5014 and allow the friendly staff at Tangible Investments (learn about us here), owned and operated by world-renowned coin expert Silvano DiGenova, to assist you in your next purchase or sale. We hope you will share our site with your friends on Twitter and Facebook, but whatever you do, don't leave the site before claiming your Free Coin.