Gold inches up, heading for the fifth consecutive monthly gain

The precious metal ticked up on Wednesday to continue its rise for the fourth straight session as fears concerning European debt crisis and US recovery spurred demand on the metal as safe haven asset.

Gold rebounded today from a low of $1402.24 an ounce to touch a high of $1409.00, where it is currently trading at $1407.90.

The previous session, gold added $22.10 or 1.60% to close at $1405.73.

Concerns regarding European debt woes are still predominant as debt is expected to swell in 2011 in highly indebted nations. The ECB said it did not succeed in fully neutralizing the excess liquidity formed by its bond purchase program for a second time since embarking on non-standard measures in May.

On the other hand, the drop in US consumer confidence in December as seen yesterday while Chicago PMI and pending homes sales are expected to show deterioration tomorrow, which is raising concerns the US recovery in waning.

Concerning the green currency, it fell against a basket of major currencies, as depicted by the dollar index, after touching a high of 80.47 to reach a low of 80.13.

Oil continued its rise to touch a high of $91.50 a barrel from the day's opening at $91.22, taking advantage of the dollar's drop.

Among other precious metals, platinum hovered around $1750.70, palladium inched down to $784.70 from the day's opening at $786.00 and silver inched up to $30.40 from $30.32, as of 07:50 GMT.