Gold rallies as dollar drops and oil advances

Precious-Gold rose on Monday to the highest in more than 30 days as the U.S. dollar fell to the sharpest in three weeks against the euro which increased the appeal of the metal as an alternative investment.

The previous day, gold added $7.60 or 0.67% to close at $1136.59 an ounce. Gold Price was setin London on Friday at $1126.75 per ounce during the PM fixing inclining from $1121.75 at the AM fixing. SPDR gold trust, the world's largest exchange-traded fund backed by bullion, slipped 3,962 tons to 1,119.54 metric tons on January 7.

Gold prices after falling from its all time peak of $1226.25 an ounce is now rebounding again towards $1200 levels. As of 08:50 GMT, the shiny metal reached $1157.38, recording a high of $1158.07 and a low of $1137.90. Today, gold gained more than 1.7% taking advantage of the dollar's slump.

The green currency dropped for the second day against majors after the release of the non-farm payrolls report on Friday which missed analysts' forecasts and raised concerns with regard the status of the U.S. labor market. The dollar index, a gauge of the dollar's movements versus six major currencies, slipped to 76.99 from the day's opening at 77.37, losing more than 0.6% after opening today on a gap.

On the other hand, crude oil, like other dollar-denominated commodities, benefited from the dollar's fall in addition to the incline in Chinese imports from crude oil by more than 20%, taking into account that China is the second-largest crude consumer in the world. Meanwhile, oil is traded above $83 a barrel, the highest in 15 months, after recording a high $83.62 and a low of $82.75.

Concerning other precious metals, platinum surged to $1574.40 from $1565.40 on Friday; palladium soared to $428.00 from $427.20; and silver climbed to $18.74 from $18.46, as of 09:00 GMT.

Today, there is lack of fundamentals from major economies; in addition, Japanese markets are closed so we might see thin trading for the rest of the day.