Gold prices rose in early trading on Monday, May 12 – pushed by the weaker US dollar and tensions in Ukraine.
Spot gold was up 0.4 percent at USD 1,294.16 an ounce at 09:52 GMT.
The stand-off between Russia and the West over Ukraine has helped lift prices from April lows, but the precious metal has been struggling to extend gains above USD 1,300 an ounce.
Some analysts believe that a further escalation in the Ukraine crisis could ratchet up interest in gold.
But it remains under pressure, due to expectations that the US Federal Reserve will further scale back its monetary stimulus measures.
“We have held around $1,300 an ounce for the last month and a half, and gold needs something to shake it out of that,” Mitsui Precious Metals analyst David Jollie said.
“What could drive that? Geopolitical issues are likely to be a major driver. A change in U.S. and European attitudes towards sanctions in Russia could ratchet up interest in gold, as could more problems in eastern Ukraine,” he said.
“(But) the current situation in Ukraine is already in the price. It would take a change in that to move things from here.”
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