Gold prices are having another positive run on Monday, rising 1 percent at the day's highs, which brings the metal $50 above where it traded when April began. But with the situation in Ukraine growing more volatile, and the Fed reiterating its commitment to improving the labor market, the rally in gold could just be getting started.
"Gold should probably have a stronger response to many of the things going on than it is right now. I'm a little confused why it isn't going higher," said Jim Iuorio of TJM Institutional Services. "Everything I read and see should be supportive of gold prices. The situation in Ukraine is getting worse, and the Fed has shown they would rather err to the side of dovish."
In eastern Ukraine, several buildings have been taken over by pro-Russian militants. And a Monday deadline that the Ukrainian government set for the protesters (whom U.S. Ambassador to the United Nations Samantha Power says are professionals involved with the Russian government) to leave the buildings has come and gone.
Recently, Russia has warned that Ukrainian actions against the pro-Russian protesters could lead to a civil war. These tension in eastern Ukraine come after the Russian annexation of the Crimean peninsula.
Geopolitical tensions tend to be good for gold, given the metal's use as a safe-haven asset. But that's not the only catalyst traders are looking at.