Gold futures inched higher on Monday as investors sought safe-haven assets amid increased tensions between Ukraine and Russia, after fighting intensified over the weekend.
Gold for December delivery rose 70 cents, or 0.05 percent, to $1,288.10 an ounce. Silver for September added 1 cent, or 0.07 percent, to $19.51 an ounce.
The moves came after heavy fighting in eastern Ukraine on Sunday, with government forces losing more ground to Russia-backed separatists. Meanwhile, Russian President Vladimir Putin called on Kiev to begin “substantive, meaningful negotiations” on the “political organisation of society and statehood in the south-east of Ukraine.”
Over the weekend, European leaders threatened to impose tougher sanctions on Russia if Moscow doesn’t end its support for the rebels.
Richard Perry, market analyst at Hantec Markets, said in a note that the escalating tensions provided support for gold prices on Monday because of the “usual Ukrainian ‘war premium’”.
In other metals, platinum for October rose 20 cents, or 0.01 percent, to $1,425.90 an ounce, while December copper slipped 1 cent, or 0.2 percent, to $3.15 a pound.
December palladium picked up $1.95, or 0.2 percent, to $911.50 an ounce.
U.S. markets were closed for the Labour Day holiday.
