Gold jumped to the highest level in almost three weeks, extending its biggest advance in a month, as escalating tension in Ukraine boosted haven demand.
Bullion for immediate delivery rose as much as 1.2 percent to $1,315.06 an ounce, the highest level since April 15, and was at $1,312.19 by 4:06 p.m. in Mumbai, according to Bloomberg generic pricing. Gold climbed 1.2 percent on May 2, the biggest increase since April 4. Metal for June delivery gained 0.7 percent to $1,312.10 on the Comex in New York.
Ukraine sought to dislodge rebels from its eastern industrial heartland amid violence that’s also spread to the Black Sea gateway of Odessa. Troops in the Donetsk area, near Russia’s border, took back a television tower overnight that had been seized by pro-Russian forces, Interior Minister Arsen Avakov said on his Facebook account. Gold has rallied 9.2 percent this year amid tension between Russia and Ukraine.
“There doesn’t seem to be any sort of resolution on the horizon,” said Gavin Wendt, the founder and senior resource analyst at Mine Life Pty in Sydney. “Whenever you have these incidents or periods of uncertainty, particularly as they relate to Europe, it’s going to be positive for the gold price.”
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