Investing.com - Gold prices traded higher on Friday as escalating tensions in Ukraine coupled with soft U.S. consumer sentiment data sparked demand for the yellow metal.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at $1,377.80 a troy ounce during U.S. trading, up 0.39%, up from a session low of $1,368.30 and off a high of $1,388.80.
The April contract settled up 0.14% at $1,372.40 on Thursday.
Futures were likely to find support at $1,328.20 a troy ounce, Monday's low, and resistance at $1,393.80, the high from Sept. 8.
The Thomson Reuters/University of Michigan preliminary consumer sentiment index fell to 79.9 for March, from 81.6 in February, defying market expectations for a rise to 82.0.
Also on Friday, data revealed that the U.S. producer price index fell 0.1% in February, confounding expectations for a 0.2% rise, after a 0.2% increase the previous month.
Core producer price inflation, which excludes food, energy and trade, slipped 0.2% last month, compared to expectations for a 0.1% rise, after a 0.2% gain in January.
Friday's data reminded investors that the Federal Reserve will take its time dismantling its monthly bond-buying program, which weakens the dollar as long as it remains in effect, thus bolstering gold's appeal as a hedge.
Meanwhile, investors remained cautious after Russia launched new military exercises near its border with Ukraine on Thursday, showing no sign of backing down on plans to annex Crimea, which further boosted gold prices.
U.S. Secretary of State John Kerry said the U.S. and Europe should take steps if a referendum on Crimea joining Russia takes place on Sunday as planned.
Kerry was set to meet with his Russian counterpart Sergei Lavrov on Friday in a last attempt to defuse tension between Moscow and the West.
Meanwhile, silver for May delivery was up 0.92% at US$21.392 a troy ounce, while copper futures for May delivery were up 0.90% at US$2.949 a pound.