Gold jumped to its highest in nearly three weeks on Monday as cautiousness in global equities and the dollar underpinned demand for the metal.
Spot gold rose to $1,247.60 an ounce early on Monday, its highest since March 23. It later pared some gains to trade up 0.4 percent to $1,245.30 an ounce by 0036 GMT, following its best weekly gain in five weeks on Friday.
The dollar nursed losses against major currencies on Monday. Safe-haven yen was consolidating a week of solid gains that saw it climb to highs not seen since 2014.
Asian stocks got off to a tentative start on Monday as Japanese markets wobbled.
Global stocks declined last week on risk-averse sentiment in the market amid weak economic data and uncertainty over U.S. monetary policy.
Federal Reserve Chair Janet Yellen on Thursday said the U.S. economy is on a solid course and still on track to warrant further interest rate hikes.
New York Fed President William Dudley on Friday said the central bank must approach further rate hikes cautiously and gradually because of lingering external risks to the U.S. economy, despite some strength at home and welcome hints of inflation.
Hedge funds and money managers cut their net long positions in gold and silver futures and options in the week to April 5, U.S. Commodity Futures Trading Commission data showed.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.22 percent to 817.81 tonnes on Friday.
Kitco News’ latest Wall Street vs. Main Street Gold Survey showed renewed positive sentiment as 80% of retail investors and 60% of market professionals expect to see higher prices next week. One key bullish indictor for some analysts is the fact that price managed to push above the 20-day and 50-day moving averages on Thursday.
Reference: Reuters, Kitco
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