Gold traded little changed near the highest in more than two months as a weakening US dollar spurred interest in the precious metal as a haven investment.
Holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, rose for the first time since May 13. Assets stood at 1,118.76 metric tons on May 22, according to figures on the company's website. The Dollar Index, which measures the greenback against six major trading partners, was little changed after falling to the lowest this year on May 22.
''With a global recovery unlikely to be smooth, the two main risks to most asset values are inflation and the US dollar -- both of which are decisively gold-positive,'' Morgan Stanley analysts led by Hussein Allidina said in a report.
Gold for immediate delivery was at $US956.35 in Singapore. The metal advanced to $US961.33 on May 22, the highest since March 20.
The US dollar approached its weakest level this year against the euro before the release of an Ifo Institute for Economic Research report today that economists say will show German business confidence rose in May, extending April's rebound from a 26-year low. The dollar was at $US1.4007 per euro from $US1.3998 in New York on May 22, when it tumbled to $US1.4051, the lowest level since Jan. 2.
Twenty-three of 30 traders, investors and analysts surveyed by Bloomberg News, or 77 per cent, said gold would climb this week. Five forecast lower prices and two were neutral.
Among other precious metals for immediate delivery, silver gained 0.3 per cent to $US14.7250 an ounce, platinum was up 0.2 per cent at $US1,159 an ounce and palladium was little changed at $US233.50 an ounce in Singapore.
