Gold rose 1 percent on Monday, boosted by lower equities and weak US data, leaving the metal well placed to log its best monthly performance in four years as turmoil in wider markets increased its safe-haven appeal. Spot gold rose 1.3 percent to $1,238.41 by 2:56 p.m. EST (1956 GMT) and was on track to finish February up 10.6 percent, its strongest monthly performance since January 2012.
US gold futures for April delivery settled up 1.1 percent at $1,234.40 an ounce. "This has started as a rocky year for global markets and while some countries are moving into negative rates, the outlook for US interest rates hikes is not as positive," Natixis analyst Bernard Dahdah said.
Bullion has rallied about 16 percent this year, rediscovering its role as a shelter for risk-averse investors in the face of tumbling equities and fears of a global economic slowdown. Among other precious metals, platinum rose 2 percent to $931.82 an ounce, while silver gained 1.4 percent to $14.88 and palladium climbed 2.2 percent to $491.
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