Investing.com - Gold prices eased early in Asia on Monday, but events in the Ukraine and Russia offered support as countries step up criticism of the shooting down of a civilian airliner.
On the Comex division of the New York Mercantile Exchange, gold for August delivery traded at $1,308.70 a troy ounce, down 0.05%, after ending last week at $1,309.40 a troy ounce.
Gold rallied 1.32%, or $17.10, on Thursday to settle at $1,316.90 an ounce.
Gold prices were likely to find support at $1,292.60, the low from July 15 and resistance at $1,340.90, the high from July 14.
Gold spiked more than 1% on Thursday following the shooting down of a Malaysia Airlines jet in eastern Ukraine, with the U.S. blaming pro-Russian separatists for shooting down the aircraft, killing 298 aboard.
Moscow has denied involvement in the crash, which came a day after the U.S. announced a fresh round of sanctions against Russia for supporting separatists in east Ukraine.
Markets were also unsettled as Israel expanded its ground offensive in Gaza.
Gold is often seen as a haven investment in times of geopolitical uncertainty.
Despite Thursday’s strong gains, Comex gold declined 0.9%, or $11.90 an ounce, on the week after Federal Reserve Chair Janet Yellen indicated that interest rates may rise sooner if the economy continues to improve.
In the week ahead, the U.S. is to release what will be closely watched data on consumer prices, home sales and manufacturing orders.
Also on the Comex, Silver for September delivery fell 0.06% to $20.873 a troy ounce.
The September silver futures contract lost 2.7%, or 58.0 cents, on the week.
Elsewhere in metals trading, copper for September delivery dropped 0.37% at $3,177 a pound by close of trade Friday.
On the week, Comex copper prices lost 2.6%, or 8.5 cents a pound as jitters over a possible bond default in China's construction sector weighed.
Northern Shanxi-based construction firm Huatong Road & Bridge Group warned earlier in the week that it may default on a 400 million yuan bond set to mature on July 23, triggering concerns over the near-term demand outlook in China.
Concerns over domestic bond defaults stoked investor worries that financing deals, which have locked up vast quantities of copper could unravel.
A cooler property sector not only weighs on demand for copper as construction material, but also dampens consumption from the home appliances sector.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.