Updated Friday, November 28, 2014 as of 1:05 PM ET

Gold Trades Near 6-Month High on Ukraine, China

(Bloomberg) -- Goldtraded near a six-month high in New York as investors weighed concern about tension between Ukraine and Russia and slowing Chinese economic growth against speculation prices climbed too fast.

The U.S. pressed Russia to cancel or postpone the March 16 referendum on Crimea joining Russia or at least agree not to follow through on a ballot result allowing Russia to absorb the Ukrainian region. U.S. President Barack Obama and U.S. allies in Europe are ratcheting up the threat of sanctions if Putin doesn’t take steps to defuse the situation.

Bullion advanced 14% this year, rebounding from the biggest annual drop since 1981, as concern economic growth in the U.S. and China is slowing and the crisis in Ukraine spurred demand for a haven. China’s retail sales, industrial output and investment last month trailed estimates, data showed today. The dollar reached the lowest level against the euro since 2011, while a technical gauge indicated gold may be set to retreat.

“Amid concerns about the Chinese economy and the geopolitical tensions between Russia and Ukraine, gold is clearly still in demand as a safe haven,” analysts at Commerzbank AG wrote in a report e-mailed today. “The price increase has also been driven by speculation, giving rise to further correction potential.”

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