Gold extends gains on weak dollar

 @ibtimes
on June 14 2010 2:45 AM

SINGAPORE (Commodity Online) : Gold prices continued its northern journey in Asian trade Monday as the dollar weakened against a basket of currencies.

Gold for immediate delivery was seen trading at $1229.18 an ounce at 12 noon Singapore time while US gold futures for August delivery was at $1230.57 an ounce.

The greenback weakened about 0.6 percent against a basket of currencies Monday as the euro's short-covering rally took it briefly above $1.22 against the dollar, its strongest in a week.

Gold struck a record at $1,251.20 last week on fears the euro zone's sovereign debt crisis may spread.

Holdings in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust were unchanged at a record high of 1,306.137 metric tons.

Other precious metals were mostly steady on Monday, waiting for cues from bullion.

On Friday, trading was volatile with prices falling to a low around $1,214 an ounce just two days after it hit an all-time high.

US gold futures for delivery in August gained $8, or 0.7 per cent, to $1,230.20 on the Comex in New York. The metal gained 1 per cent this week.

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