The price of gold surpassed the $1,300-mark for the first time in four weeks Monday morning, with the US dollar trading weak amid expectations that the US Federal Reserve will sustain stimulus.
Gold for August delivery, the most actively traded contract, gained $23.70 to $1,316.60 an ounce. Last week, gold gained just over 1 percent after the Federal Reserve Chairman Ben Bernanke clarified there was no set time line before the central bank start to taper down its quantitative easing program. Federal Reserve Chairman Ben Bernanke said the U.S. economic recovery has continued at a moderate pace but the jobs situation remains "far from satisfactory.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved down to 932.46 tons from 935.17 tons.
Meanwhile, the U.S. dollar slipped back toward a one-month low versus the euro, sterling and the Swiss franc. The buck was ticking lower against the yen.
Elsewhere, the prices of silver and platinum were trading higher in morning deals.
From the U.S., the National Association of Realtors will release its existing home sales report for June at 10 a.m ET. Economists expect existing home sales to come in at a seasonally adjusted annual rate of 5.27 million units compared to a 5.18 million unit-rate in May.
