Gold floats at new 3-1/2 month high as economy fears resurface

Singapore (Feb 24)  Gold rebounded from intra day lows on Monday, adding to last week's gains as speculators ditched equities on persistent worries over the pace of the U.S. economic recovery and China's growth.

Investors on Friday had increased bullish bets on bullion after prices broke through tough resistance at $1,300 an ounce, with weak U.S. manufacturing data and uncertainty over China's economic expansion lifting the metal's safe haven appeal.

Spot gold stood at $1,333, up 0.80 percent on the day and at a new 3-1/2 month high. Bullion has gained more than 9 percent so far this year. U.S. gold was at $1,333 an ounce, up $10.

Gold premiums in Singapore, a centre for bullion trading in Southeast Asia, were also unchanged from last week at $1.20 to $1.50 an ounce to the spot London prices.

Source:  CNBC