VINACHEM

Gold rose toward a three-week high asinvestors weighed tension in Ukraine against signs of animproving global economy. Palladium was near the highest levelsince August 2011.

Bullion for immediate delivery gained as much as 0.4percent to $1,313.66 an ounce, and traded at $1,312.02 at 1:42p.m. in Singapore, according to Bloomberg generic pricing. Goldclimbed to $1,315.68 on May 5, the highest price since April 15.

Gold has rallied 9.2 percent this year even as the FederalReserve reduced monthly bond-buying, with the conflict betweenRussia and Ukraine increasing haven demand. In China, theworld’s largest consumer, volumes for the benchmark spot goldcontract in Shanghai climbed for a second day yesterday.

The crisis in Ukraine “means that there will be some safehaven demand for gold and silver, so we expect that over theshort term, it will have a positive effect,” Piet-Hein Ingen Housz, global head of metals at ABN Amro Bank NV, said in aBloomberg Television interview. “However if the economies inthe U.S. and Europe indeed do pick up, that will have a downwardpressure on gold and silver in the longer term.”

The U.S. urged Ukraine to proceed with its May 25presidential election, rejecting Russia’s calls to postpone thevote as the government in Kiev waged an offensive againstseparatists in the country’s east and south.

Economic Recovery

Data yesterday showed the U.S. trade deficit narrowed inMarch as exports grew by the most in nine months, while a gaugefor services in the euro region climbed to 53.1 in April, from52.2 the previous month.

Gold sank 28 percent in 2013, the biggest annual drop inmore than three decades, on expectations the Fed would reducestimulus as the economy recovers. The central bank announcedcuts to asset purchases at each of the past four meetings.

Bullion for June delivery rose 0.3 percent to $1,312.10 anounce on the Comex in New York. Holdings in the SPDR Gold Trust,the largest gold-backed exchange-traded product, were unchangedfor a second day at 782.85 metric tons yesterday, the lowestsince January 2009.

Palladium for immediate delivery fell 0.3 percent to$816.25 an ounce after reaching $820.90 yesterday on concernthat supplies from Russia, the biggest producer, may bedisrupted as the U.S. threatened sanctions.

Platinum was at $1,454.10 an ounce from $1,454.75. ImpalaPlatinum Holdings Ltd., the second-largest producer, said itwould cut deliveries by as much as 60 percent in three to fourmonths should a 14-week-old pay strike continue to cripple SouthAfrican mines.

Silver added 0.5 percent to $19.6974 an ounce.