LONDON (MarketWatch) — 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 GCZ4, +0.02% rose $1.30, or 0.1%, to $1,288.70 an ounce. Silver for September SIU4, -0.12% added 7 cents, or 0.4%, to $19.47 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 organization of society and statehood in the southeast 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 PLV4, -0.01% fell 10 cents, or 0.1%, to $1,424.60 an ounce, while December copper HGZ4, -0.47% slipped 1 cent, or 0.2%, to $3.15 a pound.
December palladium PAZ4, +0.21% picked up $1.95, or 0.2%, to $911.50 an ounce.
U.S. markets were closed for the Labor Day holiday.
