Gold steady on safe-haven demand from Ukraine tensions

Singapore (May 12)  Gold recovered on Monday after falling to its lowest in a week earlier in the session, boosted by safe-haven demand from escalating geopolitical tensions in Ukraine. Spot gold was little changed at $1,289.60 an ounce by 0655 GMT, after dropping to a one-week low of $1,279.60 earlier on a softer euro.

 The euro has lost more than 1 percent since Thursday when the European Central Bank said it was ready to take action next month should
updated inflation forecasts  merit it. A stronger dollar in turn makes bullion more expensive for holders of other currencies.

In Ukraine, pro-Moscow rebels declared a resounding victory in a referendum on self-rule for eastern Ukraine, with some saying that meant independence and others eventual union with Russia as fighting flared in a conflict increasingly out of control.

Gold is seen as a safe-haven investment at times of political and economic uncertainty.