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May 16 Gold rose for a second session on Monday, as slowing economic growth in China and weakness in Asian stock markets lifted the safe-haven appeal of the precious metal.

Spot gold gained 0.4 percent to $1,277.7 an ounce by 0244 GMT, while U.S. gold futures added 0.5 percent to $1,279.5 an ounce.

"In the second quarter, $1,300 to $1,400 is a fairly reasonable price for gold as the central banks are not going to raise interest rate any time soon," said Mark To, head of research at Wing Fung Financial Group in Hong Kong. "I think overall sentiment is very positive for the gold market."

Gold has gained 20 percent this year after weak economic data in the United States and elsewhere eased expectations of a near-term increase in U.S. interest rates. Higher rates would lift the opportunity cost of holding non-yielding gold.

Still, stronger-than-expected U.S. economic data last week renewed expectations the Federal Reserve will hike rates more than once this year, capping gains in precious metals.

The great gold rush of 2016 is gathering pace. Holdings in exchange-traded funds have now surged by a quarter, with investors taking advantage of lower prices over the past two weeks to enlarge stakes on rising concern about central bank policy making worldwide.

The holdings have increased to 1,822.3 metric tons, the most since December 2013, according to data compiled by Bloomberg, after bottoming at a seven-year low in January. In the past two weeks, as prices lost 1.6 percent, ETFs swelled 63.2 tons, rising every day.

While central bank policies may have contributed to gold’s gains this year, some countries’ banks -- notably in China, Russia and Kazakhstan -- have also been substantial and consistent buyers. The World Gold Council estimates that nations are expected to buy 400 to 600 tons this year, compared with 566.3 tons in 2015, according to Alistair Hewitt, head of market intelligence.

Reference: Reuters, Bloomberg