SINGAPORE (Commodity Online) : Gold prices remained highly volatile in Asian trade Monday on reports of positive Chinese industrial output data that may ease global economic concerns to a certain extent.
Gold for immediate delivery was seen trading at $1245.84 an ounce at 12.00 noon Singapore time while US gold futures for December delivery was at $1247.35 an ounce.
Analysts said the precious yellow metal is likely to ease further during the day as upbeat Chinese economic data helped dissipate fears of a worsening global economy and ease safe-haven demand.
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Industrial production in China ramped up and money growth exceeded expectations in August, showing buoyant economic growth despite government efforts to clamp down on bank lending and property speculation.
Meanwhile, Holdings in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust were unchanged at 1,293.531 tones.
The euro surged on Monday as positive market sentiment following upbeat Chinese data and a lack of surprises from new banking rules tripped automatic buy orders and sent it up nearly 1 percent on the dollar.
The dollar weakened and Asian equities rose after positive economic signs also came from top oil consumer the United States, where wholesale inventories surged the most in two years in July.
On Friday, US gold futures ended down, but off the 10-day low hit earlier, as the yen slid against the dollar and some investors kept unwinding safe-haven plays.
Comex December gold futures eased $4.40 to end at $1,246.50 an ounce on the Comex division of the Nymex
