Gold futures settle at 3-week high

Gold futures on the COMEX division of the New York Mercantile Exchange rose Monday to settle at their highest level in three weeks, as growing tensions in Ukraine boosted the metal's safe-haven appeal for investors.

The most active gold contract for June delivery rose 8.5 U.S. dollars, or 0.64 percent, to settle at 1,327.5 dollars per ounce. It was the highest settlement for a most-active contract since March 21, statistics show.

Gold mostly responded to a safe-haven appeal as long as Ukraine remains in the headlines and Russian troops are massed along the border, according to market analysts.

In eastern Ukraine, pro-Russian militants have reportedly ignored a deadline issued by the government in Kiev to disarm or face military action, as the deadline has now passed. Those militants and other activists have extended their grip across eastern Ukraine.

Some analysts believe that the conflict would likely remain a major market-moving factor for at least this week, limiting investors' selling interest in gold for the near term at least, if not being outright supportive for upside price rise.

Silver for May delivery rose 6.4 cents, or 0.32 percent, to close at 20.010 dollars per ounce.