Gold climbs to one-week high on Ukraine tension, weaker dollar

LONDON: Gold today rose for the third day, reaching the highest in a week, as tension over Ukraine spurred haven demand and as the dollar weakened.

Gold gained 0.5 per cent to $ 1,289.57. It reached $ 1,293.50, the highest since August 20. Silver also surged 1.8 per cent to $ 19.80.

It added 2.3 per cent, the most since July 17, to $ 19.90 earlier today.

The US said Russia may be directing attacks by separatist rebels in Ukraine as fighting in the battle-torn country's easternmost regions spread to previously peaceful areas.

The violence in Ukraine expanded after Russian President Vladimir Putin this week met his Ukrainian counterpart, Petro Poroshenko, and hailed the talks as a step toward a political resolution.