Gold futures spike higher as Ukraine tensions mount
Investing.com -
Investing.com - Gold prices spiked to the highest level since October on Monday, as heightened tensions in Ukraine underpinned safe haven demand.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery rose to a session high of $1,350.30 a troy ounce, the most since October 30.
Gold prices last traded at $1,347.30 an ounce during European morning hours, up 1.95%, or $27.20.
Prices were likely to find support at $1,319.30 a troy ounce, the low from February 28 and resistance at $1,359.40, the high from October 30. Gold futures settled down 0.77% on Friday to settle at $1,321.60 an ounce.
Meanwhile, silver for May delivery rallied 2%, or $0.42 cents, to trade at $21.67 a troy ounce. The May contract ended Friday's session down 0.52% to settle at $21.24 an ounce.
Geopolitical tensions mounted after Ukrainian Prime Minister Arseniy Yatsenyuk said Sunday that his country was 'on the brink of disaster' after Russia's parliament authorized President Vladimir Putin to use military force in Ukraine.
Ukraine has put its forces on combat readiness and U.S. President Barack Obama warned Russia not to intervene. The U.S. is also considering imposing sanctions, Secretary of State John Kerry said Sunday.
Meanwhile, investors looked ahead to U.S. economic data later in the day for further indications on the strength of the economy and the future course of monetary policy.
The U.S. is to release data on personal spending, while the Institute of Supply Management is to release data on manufacturing activity.
A recent series of disappointing U.S. economic indicators have sparked concerns that the recovery has lost momentum since the end of last year as inclement winter weather weighed on growth.
Gold and silver prices have been well-supported in recent weeks amid expectations that U.S. monetary policy will remain accommodative.
Gold has gained nearly 7.5% since the beginning of the year, while silver has picked up approximately 6%.
Elsewhere on the Comex, copper futures for May delivery declined 0.75% to trade at $3.163 a pound, the lowest since November 21.
Comex copper prices extended losses from last week as lingering concerns over the health of China's economy and a weakening Chinese Yuan dampened sentiment.
Data released over the weekend showed that China's official manufacturing PMI fell to an eight-month low of 50.2 in February from 50.5 in January.
The Asian nation is the world's largest copper consumer, accounting for almost 40% of world consumption last year.
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