Gold up near $1260 on Weaker U.S. Dollar

Gold settled nearly 2 percent higher on Monday after a worse than expected U.S. manufacturing report weighed on the dollar and global equities, while persisting concerns about emerging markets bolstered some investor flight to safety.

The Institute for Supply Management (ISM) said its index of national factory activity fell to its lowest level since May 2013 at 51.3 last month, from a recently revised 56.5 in December.  Spot gold jumped to a session high of $1,266.10 an ounce and was last up 1.3 percent to $1,257 an ounce.

Bullion snapped five weeks of advances last week, falling 2 percent, but posted a 3.2 percent gain in January for the first monthly increase in five, owing to weakness in global equities gripped by concerns over emerging economies.


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