Gold jumped more than 1 percent on Monday on a brief surge of late-day technical buying as it breached the $1,200-per-ounce level long after the U.S. dollar dropped from a more than five-year high.
Spot gold was up 1 percent at $1,203.51 an ounce after briefly rising to $1,208.19. The metal lost 1.1 percent on Friday when U.S. data showed employers added the largest number of workers in nearly three years in November and that wages picked up.
U.S. gold futures for February delivery rose 0.4 percent to settle at $1,194.90 an ounce. “This is all technical buying … $1,200 is the line in the sand right now,” said Eli Tesfaye, senior market strategist for RJO Futures in Chicago.