A dip in the value of the dollar has given a boost to contracts for difference (CFD) traders who have an interest in gold
The precious metal has risen in price after demand for alternative investments increased as a result of the weakening greenback.
By 13:32 local time in Seoul, gold for immediate delivery was 0.8 percent higher on £850.80 per ounce, helping it to bounce back from the 2.9 percent fall seen last week, which was the worst weekly retreat since early July.
In New York, gold for delivery in December had added 1.1 percent to climb to £849.53 per ounce.
Gold, which has an inverse relationship with the US currency, is often used by investors as a hedge during times of economic uncertainty.
"The greenback is declining since the markets anticipate further monetary easing in the US, a positive factor for gold," Hwang Il Doo of the Korea Exchange Bank Futures Co explained to the news agency.
While CFDs are approved in most a lot of Europe, including the UK, they are not allowed in the US.
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CFDs
A contract for difference (or CFD) is a contract between two parties, typically described as "buyer" and "seller", stipulating that the seller will pay to the buyer the difference between the current value of an asset and its value at contract time.
If the difference is negative, then the buyer pays instead to the seller. In effect CFDs are financial derivatives that allow investors to take advantage of prices moving up (long positions) or prices moving down (short positions) on underlying financial instruments and are often used to speculate on those markets.
