Gold traded over $1920 oz then falls to $1850 before recovering.

Gold rose toward a near record high above 1,900 oz Monday as questions about EuroZone debt concerns sent investors fleeing to the safe-haven metal.

Stock markets in Europe extended the decline that was set off by Friday's grim US payrolls data, with European bank shares sliding to a 29-month low.

The Euro shed nearly 1% vs the USD and Crude Oil prices slumped as investors sought the favor of havens like Gold.

Expectations that a faltering US economic recovery will force the US Federal Reserve to embark on a 3rd round of Quantitative Easing (QE-3) also aided Bullion's price, with traders starting to bet on a repeat of the QE-2 program that aided Gold's more than 50% rise over the last 12 months.

Spot Gold rose 0.9% or 16.25 to 1,900.05 oz at 1855 GMT, having earlier tapped a high of 1,902.70 on the day. Gold is one of this year's best-performing commodities, up by about 33% in Y 2011.

US COMEX Gold futures for December delivery rose 25.90 or 1.4% to 1,903.10, on light trading volume of about 33% the 30-day average.

Managed money in gold futures and options reduced their net length for a 4 straight week to August 30, the latest data from the US Commodity Futures Trading Commission showed late Friday.

Sales of Gold and Silver American Eagle coins were at their highest since January in August, data from the US Mint showed. The US Mint sold 112,000 ounces of Gold coins and 3.68-M oz of Silver coins last month.

Gold prices shrugged off news the Shanghai Gold Exchange had temporarily raised trade margins, which cover the risk of default, for its Gold and Silver forwards. It is not going to have a major effect, as a lot of the demand out of Asia is physical and not speculative.

A margin requirement hike on COMEX Gold contracts was instrumental in driving Gold from record highs last week.

Silver was down 0.6% at $42.94 oz Holdings of the World's largest Silver-backed exchange-traded fund (ETF), the iShares Silver Trust, rose 35 tons Friday, the trust said.

Spot Platinum finished + 0.2 percent at 1,881.50 oz, and Palladium was down 2.8% at 764 oz.

Gold regained its premium over Platinum, with the auto-catalyst metal struggling for traction as demand fears grew.
Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.