Investing.com - Gold prices rose in Asia on Monday, supported by geopolitical events, though trading is expected to be think with many markets closed.
The Ukrainian government said at the weekend that it regained control of the separatist stronghold of Lysychansk after several days of fierce fighting, a move it said would pave the way to take back a string of other important rebel-held positions.
U.S. Secretary of State John Kerry failed to secure a temporary cease-fire between Israel and the Palestinian militant group Hamas after nearly a week of shuttle diplomacy in the Middle East, but pledged to continue his efforts over the weekend.
Markets in many parts of Southeast Asia are closed to mark the Eid holiday.
Additionally, there no major releases scheduled in the region's major economies such as Japan and China, pointing to the likelihood of a quiet day ahead.
On the Comex division of the New York Mercantile Exchange, gold for August delivery traded at $1,310.10 a troy ounce, up 0.37%. Last week, gold futures rallied 1% on Friday, as investors continued to monitor geopolitical concerns in the Gaza strip and Ukraine.
Gold’s safe haven appeal was boosted on Friday as investors continued to closely watch an intensifying geopolitical crisis between Moscow and the West over the situation in Ukraine.
The Pentagon said Friday that Russia has escalated the violence in Ukraine and may be set to provide more sophisticated weapons to pro-Russian rebels in eastern Ukraine.
Meanwhile, fighting between Israel and Hamas showed little sign of abating, despite ongoing efforts by the U.S. to reach a ceasefire.
Gold is often seen as a haven investment in times of geopolitical uncertainty.
On Friday, the Census Bureau said that U.S. durable goods orders rose 0.7% in June, beating expectations for a 0.5% gain. Core durable goods orders, which are stripped of transportation items, grew 0.8% in June, beating expectations for a 0.6% gain.
The data primed market expectations for the Fed to wind down its bond-buying stimulus program around October and raise interest rates in 2015, which would reduce the need for gold for use as a hedge against loose monetary policy.
In the week ahead, investors will be looking ahead to Wednesday’s monetary policy announcement by the Federal Reserve. The U.S. will also release the monthly non-farm payrolls report for July later in the week as well as a preliminary estimate on second quarter economic growth.
Also on the Comex, silver for September delivery climbed 0.62% to $20.673 a troy ounce.
Elsewhere in metals trading, copper for September delivery was flat at $3.427 a pound.