Gold Ends Higher On Safe Haven Appeal

(RTTNews) - Gold futures ended sharply higher for a second straight session on Monday, with investors seeking its safe haven as global equity markets declined on the continued plunge in oil prices.

Gold prices continued to rise in the wake of December's relatively strong U.S. jobs report, with the national unemployment dropping to 5.6 percent. Nevertheless, it is widely expected that the stagnant wage growth will likely convince the Federal Reserve to keep interest rates at zero through the first half of the year.

Last week, the U.S. Labor Department said non-farm payroll employment climbed by 252,000 jobs in December compared to economist estimates for an increase of about 245,000 jobs.

With little or no economic data released today for cues, investors await the crucial U.S. retail sales data report scheduled for Wednesday.

Gold for February delivery, the most actively traded contract, jumped $16.70 or 1.4 percent to settle at $1,232.80 an ounce on the Comex division of the New York Mercantile Exchange on Monday.

On Friday, gold prices ended at $1,216.10 an ounce, up $7.60 or 0.6 percent, with most global equity ticking lower on a weak dollar, after the U.S. employment report for December showed a slowdown in wage growth.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, nudged up to 707.82 tons from its previous close of 704.83 tons on Friday.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 91.96 on Monday, up from its previous close of 91.74 late Friday in North American trade. The dollar scaled a high of 92.34 intraday and a low of 91.73.

The euro trended lower against the dollar at $1.1840 on Monday, as compared to its previous close of $1.1842 late Friday in North American trade. The euro scaled a high of $1.1873 intraday and a low of $1.1787.

Markets will be paying close attention to a slew of U.S. economic data this week, including consumer sentiment and inflation reports on Friday.

In economic news, a report from the statistical offices in France and Italy, and Germany's Ifo Institute on Monday showed the euro area region set to expand moderately in the first and second quarters of 2015. Gross domestic product is forecast to grow 0.3 percent each in the first and second quarters, mainly driven by domestic demand. Investment is set to pick up moderately. It is forecast to grow 0.2 percent in the first quarter and 0.3 percent in second quarter.

Meanwhile, the Organization for Economic Cooperation and Development said the leading index signaled stable growth momentum in the region as a whole but with diverging patterns across most major economies. The composite leading index came in at 100.5 in November, up from 100.4 in October.

The indicator suggests stable growth momentum for the United States, Canada and China, while it indicated a loss of growth momentum in Germany, Italy and Russia. The index pointed to relatively lower level of momentum in France, Brazil and in the euro area as a whole.

Elsewhere in Asia, Japan raised the economic growth estimates marginally for fiscal year 2015. The real economic growth is estimated to reach 1.5 percent compared to the prior forecast of 1.4 percent, the Cabinet Office said Monday.