LONDON, Feb 19 (Reuters): Gold prices were mostly flat on Monday as the dollar clawed back some recent losses and stocks rose, but US inflation fears kept buyers in the metal.
Spot gold was flat at $1,347.31 an ounce at 1124 GMT.
The metal rose 2.4 per cent last week in its biggest weekly gain in more than five months.
US gold slipped 0.4 per cent to $1,350 per ounce.
"Gold is doing relatively well in a risk-on environment. The safe-haven appeal (in gold) is a bit in question, but it has a lot to do with movements in the dollar which has recovered somewhat," said ABN AMRO commodity strategist Georgette Boele.
The dollar index which measures the greenback against a basket of currencies, was firm on Monday after shedding 1.4 per cent last week.
Investors piled into gold last week on concerns that US inflation could heat up.
Gold is often used as a hedge against geopolitical uncertainty.
Hedge funds and money managers cut their net long positions in COMEX gold in the week to February 13, US Commodity Futures Trading Commission data showed on Friday.
Trading is expected to be slower than usual this week due Lunar New Year celebrations in China. Monday is also a market holiday in the United States.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.39 per cent to 824.54 tonnes on Friday.
Among other precious metals, silver was steady at $16.67 an ounce after falling 1.2 per cent in the previous session.
Platinum was up 0.8 per cent at $1,010 an ounce, after earlier touching its highest in over three weeks at $1,013.50.
Palladium rose 0.2 per cent to $1,045.99 an ounce after touching its highest in about two weeks.
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