Gold Below $1290 on Ukraine Tensions

Gold fell to its lowest in a week on Monday as the euro hovered near a one-month low on fears of policy action from the European Central Bank, shrugging off safe-haven demand from escalating violence in Ukraine.

Spot gold eased 0.5 percent to $1,282.50 an ounce by 0028 GMT, after dropping for two straight weeks. It fell to a one-week low of $1,279.60 earlier in the session.

The euro has lost more than 1 percent since Thursday when Mario Draghi said the bank was ready to take action next month should updated inflation forecasts merit it. A stronger dollar in turn makes bullion more expensive for holders of other currencies.


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