Gold rose above $1,300 an ounce on Monday as European shares weakened and political tensions simmered after the downing of a Malaysian airliner in eastern Ukraine last week and incessant fighting in Gaza.
Spot goldwas up 0.5 percent at $1,317.10 an ounce by 1218 GMT, while U.S. gold futures for August delivery were up 0.6 percent at $1,317.70 an ounce.
Gold jumped 1.4 percent last Thursday as some investors sought protection against any drop in equities after news of the loss of the Malaysian passenger plane.
But participants quickly banked profits the following day, contributing to a 2 percent weekly fall in prices, the first weekly drop in seven.
Some in the market reckon the jet disaster could help to bring about a diplomatic solution to the worst crisis between Russia and the West since the Cold War.
However, reports that Ukrainian forces were moving into the eastern city of Donetsk added to concerns that the conflict may instead escalate further.
In the Middle East, Hamas's armed wing said on Sunday that it had captured an Israeli soldier as fighting in Gaza led to the highest losses in a military offensive that has lasted nearly two weeks, with 100 Palestinians and 13 Israeli soldiers killed.
"Today we are likely to remain in narrow range, with some buying coming in as traders watch the headlines on the geopolitical side," VTB Capital analyst Andrey Kryuchenkov said.
"Depending on the U.S. CPI data tomorrow, prices may test support at $1,295."
In wider markets, the dollar <.DXY> was up 0.1 percent against a basket of main currencies, while European shares fell and U.S. stock futures also edged lower.
The market will continue to monitor U.S. economic data after recent reports supported views that the world's largest economy is on a steady recovery path, suggesting that the Federal Reserve could raise U.S. interest rates sooner than expected.
In a measure of investor sentiment, holdings of the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 1.8 tonnes to 805.14 tonnes on Friday.
Speculators, however, cut bullish bets on gold futures and options in the week to July 15 for the first time in six weeks as prices fell.
In other precious metals, palladiumwas up 0.6 percent at $882.25 an ounce on possible supply worries that could emanate from stricter sanctions on top producer Russia.
Platinumwas up 0.8 percent at $1,493.20 an ounce. The world's biggest producer, Anglo American Platinum , said on Monday that it plans to sell its Union mine, Rustenburg operations and a South African joint venture in a widely expected move after a five-month strike.
Spot silverrose 1.1 percent to $21.05 an ounce.
Source: Reuters
Spot gold
Gold jumped 1.4 percent last Thursday as some investors sought protection against any drop in equities after news of the loss of the Malaysian passenger plane.
But participants quickly banked profits the following day, contributing to a 2 percent weekly fall in prices, the first weekly drop in seven.
Some in the market reckon the jet disaster could help to bring about a diplomatic solution to the worst crisis between Russia and the West since the Cold War.
However, reports that Ukrainian forces were moving into the eastern city of Donetsk added to concerns that the conflict may instead escalate further.
In the Middle East, Hamas's armed wing said on Sunday that it had captured an Israeli soldier as fighting in Gaza led to the highest losses in a military offensive that has lasted nearly two weeks, with 100 Palestinians and 13 Israeli soldiers killed.
"Today we are likely to remain in narrow range, with some buying coming in as traders watch the headlines on the geopolitical side," VTB Capital analyst Andrey Kryuchenkov said.
"Depending on the U.S. CPI data tomorrow, prices may test support at $1,295."
In wider markets, the dollar <.DXY> was up 0.1 percent against a basket of main currencies, while European shares fell and U.S. stock futures also edged lower.
The market will continue to monitor U.S. economic data after recent reports supported views that the world's largest economy is on a steady recovery path, suggesting that the Federal Reserve could raise U.S. interest rates sooner than expected.
In a measure of investor sentiment, holdings of the SPDR Gold Trust
Speculators, however, cut bullish bets on gold futures and options in the week to July 15 for the first time in six weeks as prices fell.
In other precious metals, palladium
Platinum
Spot silver
