Gold was trading near its highest level in over six months on Monday on weaker equities and as Crimea voted to join Russia, heightening tensions between Moscow and the West. Bullion has gained 15 percent this year as mounting geopolitical tensions and fears over slowing economic growth spurred demand for the metal seen as a safe-haven asset.
Spot gold was up 0.1 percent to $1,383.60 an ounce by 0726 GMT, after earlier hitting $1,391.76 - its highest since September 9. Asian shares were near one-month lows. "The political environment regarding Ukraine is very supportive of (gold) prices and it will continue for a while. I think it is easy for prices to go all the way to $1,500 in the next few weeks," said Dick Poon, general manager of refiner and dealer Heraeus Metals in Hong Kong. Prices in China are at a $6 an ounce discount to spot prices, indicating a sharp drop-off in demand compared with the beginning of the year when prices were at a premium of $20.
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