Gold price retakes $1,300 on Ukraine tensions

The price of gold jumped to a two-week high on Friday as safe-haven buyers returned to the market on growing fears of an escalation in the conflict in Ukraine.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery in midday trade exchanged hands for $1,301.30 an ounce, up more than $10 from Thursday's close.

Gold is now at its highest since April 14. Earlier in the day the metal touched $1,305.20, bringing its year to date gains to 9%.

Gold was supported by a weak dollar and investors seeking the relative safety of gold as a hard asset after news of renewed clashes between Ukrainian security forces and pro-Russian activists.

Western leaders accuses Russia of failing to live up to the terms of the Geneva deal cut a week ago, by not doing anything to restrain rebel activity in the east of the country while at the same time amassing its troops at the border.

Ukraine officials said rebels who have seized the town of Slavyansk in the east of the country will be removed through military action and that any incursion by Russian forces will be deemed an invasion.

Ukraine's prime minister Arseniy Yatsenyuk accused Russia of wanting to start World War 3, while Russian president Vladimir Putin warned of "consequences" should Kiev eject pro-Russian militias by force.

Gold 1-day spot