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Today has seen gold hit a six-month high and, with worries over what might happen this weekend hanging over the markets, there is every chance that higher levels still will be reached.
This weekend there is a good chance that Crimea will vote to join up with Russia and in doing so will see EU leaders being forced to escalate their condemnation of Russia into more direct sanctions being imposed. With around 25% of the energy supplies being used by the EU coming from Russia via Ukraine, there is a real threat that Vladimir Putin could himself impose some direct actions in retaliation to any sanctions these countries might impose on him. This is a particularly delicate issue for the EU nations as the recovery is still very fragile and would find it difficult to sustain a prolonged period of restricted energy supplies.
These increased fears could go some way to helping the gold price rise up to the $1400 level, but only further uncertainties would be able to push it past this area in the short term.