Gold prices rose over 1 per cent on Monday, boosted by a slide in US dollar to its lowest in a month, while growth concerns in the economy kept bullion's safe-haven demand intact, reports Reuters.
Spot gold rose 0.8 per cent to $1,860.34 per ounce by 1058 GMT. Prices hit their highest since May 9 at $1,865.29 earlier in the session. US gold futures gained 1 per cent to $1,860.00.
The dollar slumped 1 per cent as investors kept up selling pressure, cutting bets on further dollar gains from rising US rates. A weaker dollar makes gold cheaper for overseas buyers.
"Gold bugs are drawing strength from a weaker dollar, concerns over accelerating inflation, and global growth fears... In the near term, a weaker dollar could provide the precious metal a tailwind, lifting prices further away from the 200-day simple moving average," FXTM analyst Lukman Otunuga said.
"While gold seems to be pushing higher, the Federal Reserve's aggressive approach towards high-interest rates could act as a major roadblock for the zero-yielding metal."
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