Investing.com - Gold futures moved higher on Monday after slumping European stocks sparked safe-haven demand for the precious metal.
A softer dollar supported prices as well, as the two assets tend to trade inversely with one another.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at $1,246.40 a troy ounce, up 0.60%, up from a session low of $1,235.00 and off a high of $1,249.00.
The December contract settled down 0.18% at $1,239.00 on Friday.
Futures were likely to find support at $1,232.00 a troy ounce, Friday's low, and resistance at $1,250.30, last Wednesday's high.
European stocks fell on Monday after German business software maker SAP cut its 2014 operating profit forecasts, which bolstered gold's appeal as a safe haven during times of market turmoil.
Germany’s Bundesbank reported earlier the country’s economy barely grew in the third quarter, as industrial output slowed and business sentiment deteriorated.
In its monthly report the German central bank said that while the euro zone’s largest economy was unlikely to enter a recession the economic outlook for the fourth quarter was cautious.
A weaker dollar boosted gold futures as well.
The dollar softened against many major currencies earlier on concerns that even though the Federal Reserve is seen closing its monthly bond-buying program next week, rate hikes may come later in 2015 than once anticipated to make sure cooling European and Asian economies won't dampen U.S. recovery.
Elsewhere, a soft opening on Wall Street also boosted gold prices, though U.S. stocks later gained ground, which limited the yellow metal's advance.
Meanwhile, silver for December delivery was up 0.42% at $17.403 a troy ounce, while copper futures for December delivery were down 0.52% at $2.988 a pound.