FM:Gold price holds above $1,300/oz on Ukraine tensions
The gold price remained elevated near $1,300 in start-of-week trading, with escalating tensions between Russia and Ukraine continuing to support safe-haven demand.
Spot metal was last at $1,303.10/1,303.90 per ounce, down 40 cents on Friday's close but significantly higher than last week's two-month low of $1,268.50.
But downside pressure for the metal may not be exhausted, analysts warned.
Although the metal seems to be establishing a base around $1,280, it remains vulnerable - last week's spike lower "breached important support levels, which shows there were sellers around", FastMarkets William Adams said.
"While gold has benefited from inconsistent bouts of strength as various short-term factors have pulled it pillar to post, we still think that gold will move lower," Barclays analyst Suki Copper said.
"The floor is not firm for gold, with physical demand not making up for soft investor demand," she added. "In addition, dollar supportiveness lingers on the horizon, which would expose gold to downside pressure."
The dollar was last at 1.3868 against the euro, down a third of a cent.
In geopolitical developments, European Union diplomats are set to meet to agree the names of more Russians to be targeted as a broader range of sanctions are considered.
Separatists in the Ukrainian city of Kostyantynivka are still holding seven observers hostage - having released one on medical grounds on Sunday. Clashes with unionists have also been reported in other centres and US president Barack Obama accused the Kremlin of "not lifting a finger" to implement last week's Geneva deal aimed at easing the crisis.
US data will also provide some major points of focus, with March pending home sales later today forecast to increase one percent after a decline of 0.8 percent in February.
This will be followed on Tuesday by the Consumer Board's consumer confidence number - forecast at 82.9 points.
The release of the Federal Open Market Committee minutes, advance first-quarter GDP - annualised growth of 1.2 percent is forecast - and the ADP non-farm employment change will be closely watched but Friday's non-farm payrolls are the benchmark data of the week.
The non-farm employment change is forecast to grow by 207,000 in April, up from 192,000 in March, with the national unemployment rate is seen falling to 6.6 percent.
In wider markets, the Nikkei is down nearly one percent and the Hang Seng nearly 0.5 a percent but the FTSE 100 and Dax are both about 0.3 percent higher.
In the other precious metals, the palladium price remains well-supported and near its two-and-a-half year high at $808/814 per ounce, up $3 on Friday's close, while the platinum price climbed $11 to $1,426/1,431. Silver was down five cents at $19.64/19.69.
