Gold prices jumped sharply in Asia on Monday as worries over the global economic outlook sent investors scuttling towards safe-haven bullion amid a selloff in equities and the dollar. Spot gold rose to a near-four-week high of $1,237.30 an ounce before paring some gains to trade up 0.9 percent at $1,234.20 at 0644 GMT.
US gold futures jumped to $1,238, their highest since September 17. Silver, platinum and palladium also gained. Gold's first leg up on Monday came during early Asian hours when liquidity was thin. Japan, which is usually active early in the Asian day, was closed for a public holiday.
"A few stops were triggered this morning once we hit $1,225," said a precious metals trader in Hong Kong. "With the dollar and equities under pressure, and what is seen as dovish comments from Federal Reserve officials over the weekend, it looks like gold could see some more upside." "We are expecting a move up to the $1,240-50 area, though we would be sellers there."
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