LONDON: Gold failed to benefit strongly on Monday from warnings that Russia’s conflict with Ukraine was sliding out of control, which would usually increase demand for assets perceived as safer.

Spot gold was unchanged on the day at $1,286.90 an ounce, tentatively extending a small gain posted in the previous week. Liquidity was low as US markets are closed for the Labour Day holiday.

Physical demand for bullion remained subdued in August, with the US Mint seeing a 17 per cent month-on-month drop in sales of American Eagle gold coins.

Spot silver was flat at $19.44 an ounce, while spot platinum lost 0.1pc to $1,418.25 an ounce.

Palladium rose to a 13-1/2-year high of $910 an ounce, the highest since February 2001, and was up 1pc at $907.97 by 1449 GMT.

Published in Dawn, September 2nd , 2014