Bareksa.com - Gold climbed to its highest in 1-1/2 weeks on Monday, steadying above $1,300 an ounce as weaker equities and escalating geopolitical tensions in Ukraine boosted the metal's safe-haven appeal.

Traders were cautious about the price gains as they said the tensions could be short-lived and that outflows from gold-backed exchange traded funds had only paused, rather than reversing.

The Federal Reserve's policy meeting later in the week for Investor sentiment towards gold has improved in recent days. and silver futures and options, their first weeks, according to data from the Commodity Futures Trading <span 1.6em;"="">Commission on Friday.

SPDR Gold Trust, the world's biggest bullion ETF, has not seen any outflows since April 22 though it hasn't seen any inflows either.

Markets are eyeing the Fed's policy statement on Wednesday and a U.S. jobs report on Friday to gauge the strength of the economy and the outlook for the U.S. central bank's stimulus measures.

In the physical market, premiums in India - the world's second biggest gold consumer - jumped to their highest level in more than 2-1/2 months due to short supplies.

Platinum and palladium gained as violence erupted in South Africa's strike-hit platinum belt on Sunday.

However, the end game to the 13-week strike seemed to be drawing near after the producers said they would take their latest wage offer directly to employees.

PRICES AT 0327 GMT
Metal Last Change Pct chg

Spot gold 1303.8 0.96 0.07
Spot silver 19.65 0.04 0.2
Spot platinum 1426.74 11.54 0.81
Spot palladium 808.13 2.33 0.29
Comex gold 1304.3 3.5 0.27
Comex silver 19.695 0.004 0.02

COMEX gold and silver contracts show the most active months (Source : Reuters)