Gold Rallies to Near $1240 on Weaker U.S. Dollar

Gold edged up from the previous session’s three-week low on Monday, as European equities were hurt by soft Chinese trade data and worries about Greece, though a steady dollar capped the upside.

U.S. gold futures settled $6.90 higher at $1,241.50 an ounce.  Spot gold gained 0.7 percent to $1,239.56 an ounce. The metal on Friday posted its biggest one-day loss since December 2013, hitting $1,228.25, as the dollar rallied after strong U.S. payrolls data.

“For the three months up to the FOMC meeting gold has behaved as a safe haven because of Greece, but now the focus has shifted back to the U.S. and the timing of the U.S. interest rates hike,” Citi analyst David Wilson said, referring to last month’s interest-rate policy meeting of the Federal Open Market Committee.


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