Gold prices rose to their highest in almost three weeks on Monday, setting the market on course toward $1,300 an ounce, drawing confidence from continued ultra-low interest rates. Weak economic data and uncertainty over US monetary policy has contributed to risk aversion, boosting investor appetite for bullion and other assets perceived as safer stores of value, including the Japanese yen.
Spot gold hit $1,258.70 an ounce, its highest since March 22, before retreating slightly to $1,255.93 at 2:33 pm EDT (1833 GMT), up 1.3 percent. US gold futures for June delivery settled up 1.1 percent. "Very loose monetary policy pursued by several central banks should point to even higher gold prices," Commerzbank analyst Daniel Briesemann said. "The ECB also increased its bond-buying purchases, and has not ruled out further measures."
In euro terms, the price of gold reached the 1,100-euro mark for the first time since March 30. In other precious metals, silver prices outperformed gold, with additional support from the steady inflows of exchange-traded funds and trading of the falling gold-silver ratio. Spot silver gained 3.9 percent to $15.95 an ounce, platinum rose 2 percent to $985.12 and palladium was up 1.1 percent at $544.93.
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