Gold prices rise as clashes erupt in Ukraine

London (May 2) Gold prices are rising as tensions mount in Ukraine. Gold for June delivery climbed $19.50 to settle at $1,302.90 an ounce on Friday. Silver for July jumped 50 cents to $19.55 an ounce.

Early Friday, the Ukrainian government launched what appears to be its first major offensive to regain control of an area held by pro-Russian separatists.

Gold prices surged following reports of the clashes. They had dropped earlier in the day after the U.S. government said employers added 288,000 workers to their payrolls in April.

Traders often buy gold in anticipation of a crisis. In March, gold prices reached their highest level this year as tensions in Ukraine began to rise.