Gold Steady Below $1280 on Save Haven Demand

Gold held close to a four-month high on Monday as uncertainty in global markets pushed investors towards the safe-haven metal, with the focus this week on the European Central Bank’s policy meeting.

Spot gold was firm at $1,278.21 an ounce by 0046 GMT, near a four-month high of $1,281.50 reached on Friday.  The metal gained nearly 5 percent last week after Switzerland unexpectedly abandoned a cap on the franc.

Dealers assumed that the Swiss National Bank had moved with the knowledge that the European Central Bank would take the plunge into full scale quantitative easing at its policy meeting on Jan. 22.


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