Los Angeles CA, August 28 (Tangible Investments) - by James O’Dell - Gold bullion prices turned sharply higher in overnight trade after gaining $2.30 or 0.18 percent on Wednesday to close at $1,283.00 an ounce on a weaker dollar and rapidly rising tensions in Ukraine. Silver climbed 0.11 or 0.57 percent to close at $19.48 an ounce while the Gold/Silver ratio fell to 65.86.
"The metal rebounded today, testing the resistance around the $1,290 level because obviously the dollar is a bit softer and there has been some further skirmishes along the Ukraine-Russia border helping see some safe-haven buying," said Societe Generale's Robin Bhar.
Pro-Russian separatist forces in eastern Ukraine, are reportedly battling Ukrainian government forces on two separate fronts on Thursday, while being supported by Russian manned tanks and armored personnel carriers, according to Ukrainian military officials.
The fighting is taking place along Ukraine's southern coast in the town of Novoazovsk, just 12 miles from Russia's border, said Mykhailo Lysenko, deputy commander of the Ukrainian Donbas battalion. "This is a full-scale invasion," said Lysenko. One U.S. official told CNN that intelligence is indicating that up to 1,000 Russian troops with heavy weapons are now fighting there.
Meanwhile, experts are now calling for as much as a 60 percent plunge in global equity markets, according to a report on CNBC. Markets will face a "period of extreme turmoil," says David Tice, president of Tice Capital, on CNBC's "Power Lunch," on Wednesday. A jolt to international confidence in central banks will precipitate the correction that could see a 30 to 60 percent market decline.
The crash will be triggered by disappointment with the Fed's so-called "confidence game," which will, in turn, spark a rise in inflation and a scramble by the Fed to raise rates. At that point, adds Tice, "the Fed starts to lose control."
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