Gold prices jumped to session highs Thursday as U.S. equity markets and U.S. Treasury yields softened, with traders suggesting continued tensions in Ukraine as the spark for cross-market movement.

At 10:04 a.m. EDT, Comex June gold prices are up $7.20 at $1,291.80 an ounce, while the June S&P 500stock index futures are down 3.90 points at 1869. Yields on the U.S. 10-year Treasury note are at 2.69%.

Gold prices started the session weaker, falling through support at the 100-day moving average around $1,279.80. However, around 9:40 a.m. EDT, gold reversed its losses and shot higher. That’s also when stocks reversed and U.S. Treasury yields fell.

Market watchers are looking for a definitive reason behind the cross-market move.

Daniel Pavilonis, senior commodities broker with RJO Futures, said there’s talk that the bubbling tensions in Ukraine for the reason for the upswing in gold and the drop in equities and Treasurys.

An ABC News report from 9:38 a.m. EDT said the Russian President Vladimir Putin offered a “vague but ominous warning” to Ukraine’s government saying there may be unspecified “consequences” after using force against pro-Russian separatists in the east of Ukraine.

The Associated Press also reported that Russian Defence Minister Sergei Shoigu announced new military exercises in the coutnry's southern and western areas, in reaction to the increased tensions in eastern Ukraine.

Yet others doubt the Ukraine situation has changed that much to warrant such a change in several market directions. “This really isn’t anything different than what we’ve heard yesterday,” said Sterling Smith, futures specialist at Citibank Institutional Client Group.

Bill Baruch, senior market strategist at iiTrader, said $1,300 will continue to be the key area for gold in the near-term as the rally managed to push prices to a session high of $1,298.90.

“If you start getting a soft equity market along with these fears about Ukraine and Russia, gold is going to be the safe-haven,” he said. “If equities continue to weak then gold will continue to rise."

Gold prices in morning trading Thursday have made a solid recovery from a 2.5-month low scored in overnight trading. Safe-haven demand amid new violence in Ukraine has helped to fuel the rally in gold. Short covering from the shorter-term traders is also featured following recent selling pressure in Comex futures. The U.S. stock indexes have also backed down from their daily highs, on risk-aversion. News reports Thursday said Ukrainian military forces have stopped one of their operations in the eastern part of the country due to fears of Russia sending in its army to eastern Ukraine. Several pro-Russia separatists were reported killed Wednesday as Ukraine's military tries to retake control of some eastern cities. June Comex gold was last up $7.00 an ounce at $1,292.00.

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