Gold settled around a three-week high on Monday as mounting tensions in Ukraine curbed investor appetite for risk, boosting bullion's appeal as an insurance asset, while palladium prices rallied to a 2-1/2 year peak.
The autocatalyst metal hit its highest since August 2011 at $815.70 an ounce on growing fears that supply would suffer from fresh U.S. sanctions on top producer Russia, as well as prolonged labour strikes in No. 2 miner South Africa.
Pro-Russian separatists on Monday ignored an ultimatum to leave occupied government buildings in eastern Ukraine while another group of rebels attacked a police headquarters as a threatened military offensive by government forces failed to materialize.
Gold futures for June delivery settled $8.50 higher at $1,327.50 an ounce.
Meanwhile, spot gold was last up 0.7 percent at $1,327 an ounce, having earlier touched its highest since March 24 at $1,329.70. Gold futures for June delivery settled $8.50 higher at $1,327.50 an ounce.