SINGAPORE: Gold prices rose on Monday, holding ground above the key $1,800-per-ounce level, as a weaker dollar and worries over surging Covid-19 cases around the globe kept the safe-haven metal underpinned.
Spot gold was up 0.5% at $1,807.16 per ounce by 0731 GMT. US gold futures rose 0.5% to $1,811.10.
"The Covid-19 narrative is not going away and (we) don't think the US Federal Reserve is going to change course on the rates anytime soon, which should support gold prices," said Stephen Innes, chief market strategist at financial services firm AxiCorp.
The medium-term outlook for the economic recovery still looks very uncertain and this continues to provide ample room for gold to float higher, Innes added.
Gold is used as a safe investment during times of political and financial uncertainty.
Indicative of investor sentiment, speculators increased their bullish positions in COMEX gold and silver contracts in the week to July 7, the US Commodity Futures Trading Commission said on Friday.
Spot gold still targets $1,831, as it has broken a resistance at $1,796 per ounce, according to Reuters technical analyst Wang Tao.
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