Gold futures rallied in New York on Monday along with other precious-metals futures , helped by a strength in crude oil and worries over the financial stability of the U.S. economy heightened investors demand for the precious metal.
June gold rose $13.60 to $926.80 an ounce on the Comex division of the New York Mercantile Exchange. The June contract at the Chicago Board of Trade was up $13.20 to $926.60.
Comex May silver rose 36.5 cents to $18.12. As it was closing, CBOT May silver was up 38.3 cents to $18.129.
Crude oil and other energy futures also recorded strong gains. May crude oil was up $2.78 at $109.01 a barrel and hit a high of $109.48 during intra-day trading, its strongest level since March 17.
On currency trading, the dollar held gains against most major counterparts Monday as the U.S. stock market extended an overseas rally. The dollar index, which tracks the performance of the greenback against other currencies, gained 0.4 percent to 72.21.
On Friday, gold closed with a modest gain after the dollar tumbled after data reported employment rate dropped more than was expected in March, hinting that the U.S. economy may already be in a recession.
Friday's data again served to create recessionary fears in the U.S., and will continue to draw interest from longer-term investors looking to offset recessionary/inflationary fears, and factor in some form of safe-haven protection, James Moore, an analyst at TheBullionDesk.com, wrote in a research note.
In the short term, though, we expect gold to remain in a volatile mood, Moore said.
Also on the Nymex, July platinum rose $16.40 to $2,046.90 an ounce, while June palladium gained $12.75 to $457.15 an ounce.
Platinum remains strengthened by the power-supply shortages in South Africa, the world's top platinum producer, where continuous blackouts affect mining production and leave the precious metals supply count unstable.