Investing.com - Gold rose to the highest level since September on Wednesday, as mounting tensions over the ongoing political and military crisis between Russia and the West over Ukraine boosted demand for safe-haven assets.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery rose to a session high of $1,369.00 a troy ounce, the most since September 19.
Gold last traded at $1,366.40 an ounce during U.S. morning hours, up 1.46%, or $19.70. Gold picked up 0.39% or $5.20 an ounce on Tuesday to settle at $1,346.70.
Futures were likely to find support at $1,327.50 a troy ounce, the low from March 10 and resistance at $1,375.10, the high from September 19.
Meanwhile, silver for May delivery rallied 1.57%, or $0.32 cents, to trade at $21.14 a troy ounce. Silver ended Tuesday’s session down 0.45%, or $0.09 cents, to settle at $20.81 an ounce.
Investors continued to monitor events in Ukraine, where tension over moves by neighboring Russia in the Crimean region have heightened demand for safe haven assets.
Leaders of the Group of Seven biggest industrial nations warned Russia on Wednesday not to annex Crimea.
In a joint statement, the leaders said Russian annexation of Crimea "could have grave implications for the legal order that protects the unity and sovereignty of all states."
Should Russia take the step, the G-7 said it would respond with further action "individually and collectively."
Ukraine’s interim Prime Minister Arseniy Yatsenyuk will meet with U.S. President Barack Obama later in the day, as diplomatic efforts to resolve the crisis continued.
Elsewhere on the Comex, copper futures extended losses from the previous session to hit a daily low of $2.908 a pound, the weakest since July 2010. Copper last traded at $2.939 a pound, down 0.45%.
Copper has been under heavy selling pressure in recent sessions as growing concerns over the health of China’s economy dampened demand for growth-linked assets.
In addition, there were concerns over the state of the country's corporate sector. Investors remained jittery over signs of weakness in the bond market after last week's default by Chinese solar company Chaori Shanghai Solar Energy Science & Technology Co.
On Wednesday, the focus was on Shanghai-based Baoding Tianwei Baobian Electric Co., a power equipment manufacturer for the new energy sector. Shares in the company sank more than 5% in Shanghai, while its corporate bond was suspended for a second day, after it reported a full-year net loss for the second consecutive year, which led to a delisting warning.
Concerns over domestic bond defaults stoked investor worries that financing deals that have locked up vast quantities of copper could unravel.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.