Investing.com - Gold prices rose on Monday, buoyed up by increased investor demand for safe haven assets as oil prices tumbled after a weekend meeting of major producers ended without an agreement on curtailing production.
U.S. gold futures for June delivery were up 0.34% at $1,238.6 an ounce by 0945 GMT.
A meeting of the world’s major oil producers in Doha, Qatar on Sunday ended without an agreement on an output freeze intended to rein in ballooning overproduction and bolster prices.
Global shares dropped on Monday and the safe haven yen rallied to almost 18 month highs against the dollar as sharp declines in oil prices hit investor confidence.
The precious metal ended the previous week down 0.86% on Friday as the dollar posted a weekly gain against the other major currencies.
Still, gold prices posted their strongest quarterly gains in 30 years in the first three months of 2016 as global growth concerns and investor uneasiness about negative-interest-rate policies in Japan and Europe bolstered investor appetite for bullion and other safe haven assets, including the yen.
The metal was also boosted by the view that the Federal Reserve is likely to stick to a cautious approach on future interest rate increases amid concerns over the global economic outlook.
An increase in interest rates would boost the greenback by making it more attractive to yield-seeking investors, while weighing on gold by making it more expensive for holders of other currencies.
Among other precious metals, silver futures for May delivery were down 0.48% to $16.23 an ounce. Copper for May delivery slid 0.42% to $2.144 a pound.