RTRS:Gold holds above $1,300/oz on Ukraine stand-off
By Jan Harvey
LONDON (Reuters) - Gold prices steadied above $1,300 an ounce on Monday, underpinned by concerns that tensions in Ukraine could escalate, while platinum outperformed as a strike across the South African platinum belt entered a third month.
The stand-off between Russia and the West over Ukraine helped gold rise strongly towards the end of last week from the 2-1/2 month low it hit on Thursday at $1,268.24.
Spot gold was at $1,303.10 an ounce at 0926 GMT, little changed from $1,302.84 late on Friday, while U.S. gold futures for June delivery were up 70 cents an ounce at $1,301.50.
"The market is nearly flat, consolidating after Friday's gains, trading mostly on Ukraine headlines," VTB Capital analyst Andrey Kryuchenkov said. "The rebound at the end of last week was driven mostly by safe-haven buyers and some investor buying on new April lows."
"For now, all eyes will be on Ukraine and potentially extended sanction against Russia."
Pro-Russian rebels paraded European monitors they are holding in eastern Ukraine on Sunday, freeing one but saying they had no plans to release another seven as the United States and Europe prepared new sanctions against Moscow.
Leaders of the Group of Seven major economies could announce far-reaching sanctions on Russia as early as Monday, extending previous measures against some Russian entities for their role in Moscow's annexation of Ukraine's Crimea region. [ID:nL6N0NJ066]
Tensions over Ukraine weighed on world stocks on Monday, keeping them near 10-day lows, though European bourses benefited from well-received corporate results and merger speculation. The dollar index edged lower, also supporting gold. [MKTS/GLOB] [FRX/]
CHINESE IMPORTS FROM HONG KONG SLOW In the physical market, premiums in top buyer China were at about $2 an ounce. Hong Kong customs office data showed China bought less gold in March from Hong Kong than in the previous month, although the drop was smaller than expected, analysts said. [ID:nL3N0NK2KC]
Net gold flows into China from Hong Kong fell to 85.128 tonnes from 112.314 tonnes in February, the data showed.
Premiums in India, the second biggest gold consumer, jumped to $110 an ounce, their highest level in more than 2-1/2 months due to short supplies. [GOL/AS]
Among other precious metals, spot platinum outperformed to rise 0.6 percent to $1,423.25 an ounce, while spot palladium was up 0.2 percent at $807.47 an ounce.
Producers said they would take their latest wage offer directly to employees after marathon wage talks to end the 13-week strike collapsed on Thursday. [ID:nL6N0NJ0RP]
"This raises the possibility that there will be no collective agreement and that the producers will have to settle individually with some 70,000 workers, setting a unique precedent and leaving a question mark over future labour relations," Mitsubishi precious metals strategist Jonathan Butler said in a report.
"Any non-collective agreement also heightens the probability that there will be a piecemeal return to work, with the threat of violence and intimidation."
Police used water cannon and stun grenades to disperse rioters in South Africa's strike-hit platinum belt on Sunday after a government minister was attacked by rock-throwing protesters while campaigning for the May 7 election.
