Gold Ends At 3-Week High On Safe Haven Appeal

(RTTNews) - Gold futures rebounded to end at a three-week high on Monday, as investors sought the safe haven appeal of the precious metal as the geopolitical tensions in Ukraine continued to escalate, with speculations on U.S. response to the crisis. Meanwhile, the dollar strengthened on some upbeat macroeconomic data from the U.S., limiting the gains made by the precious metal.

In east Ukraine, pro-Russian activists took control of another official building, largely ignoring the Monday deadline for pro-Russian factions to leave peacefully or face eviction by security forces. Activists took barged into and took control of a building housing a police station in Horlivka, further challenging the Ukraine government.

In economic news from the U.S., retail sales rose more than expected in March with buyers heading back to stores after the unusually rough winter, a Commerce Department release showed Monday.

Gold for June delivery, the most actively traded contract, gained $8.50 or 0.6 percent to close at $1,327.50 an ounce on the Comex division of the New York Mercantile Exchange on Monday.

Gold for April delivery scaled an intraday high of $1,331.40 and a low of $1,318.70 an ounce.

Gold prices ended higher by 1.2 percent last week, due mainly to its safe haven appeal with U.S. equities taking a plunge and on expectations the U.S. Federal Reserve will keep low rates through 2015.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, edged up to 806.42 tons from 806.22 tons on Friday.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 79.71 on Monday, up from its previous close of 79.49 late Friday in North American trade. The dollar scaled a high of 79.83 intraday and a low of 79.56.

The euro traded lower against the dollar at $1.3825 on Monday, as compared to its previous close of $1.3843 late Friday in North America. The euro scaled a high of $1.3862 intraday and a low of $1.3810.

In economic news from the U.S., retail sales jumped 1.1 percent in March after climbing by an upwardly revised 0.7 percent in February. Economists expected sales to increase by about 0.9 percent compared to the 0.3 percent increase originally reported in the previous month.

Separately, a Commerce Department report showed business inventories in the U.S. rose 0.4 percent in February. Economists expected inventories to increase by about 0.6 percent. Nonetheless, business sales indicated a notable 0.8 percent increase in February after tumbling 1.1 percent in the previous month. Inventories at merchant wholesalers also increased by 0.5 percent in February after climbing 0.8 percent in the previous month.

Meanwhile, eurozone industrial production expanded moderately in February underscoring the fragile nature of recovery in the currency bloc during the first quarter. Industrial production grew 0.2 percent month-on-month in February, reflecting improvement in non-durable consumer goods and intermediate goods sectors, Eurostat said Monday. This was the first rise in production in three months and matched economists' expectations.