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Gold jumps more than 1% on crisis in Ukraine

Published on Mar 3, 2014 9:33 AM

SINGAPORE (Reuters) - Gold gained more than 1 per cent on Monday on escalating geopolitical tensions as Ukraine mobilised for war after Russia bloodlessly seized Crimea, an isolated Black Sea peninsula where Moscow has a naval base.

The Group of Seven major industrialised nations condemned Russia's intrusion into Ukraine and cancelled preparations for the G8 summit, that includes Russia, scheduled for Sochi in June, the White House said.

Cash and US gold futures hit an intraday high around US$1,345 an ounce, with the United States threatening to isolate Russia economically in Moscow's biggest confrontation with the West since the Cold War. Crude oil, which often dictates gold, hit multi-month highs.

"I think there's short-term support for gold because of the turmoil. I am looking to find out whether it will break a previous high of US$1,361.60 touched in October last year," said Joyce Liu, investment analyst at Phillip Futures in Singapore.

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