Reply #29: Gold rises 1 pct on Europe prospects, China data [View All]

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http://uk.reuters.com/article/2011/10/24/businesspro-us-markets-precious-idUKTRE78M11C20111024

(Reuters) - Gold rose more than 1 percent on Monday, as European leaders edged toward a solid plan to resolve the euro zone debt crisis and signs that China's economy is in better shape than feared.

In recent weeks gold prices have followed moves in riskier assets, with the precious metal's safe-haven appeal diminishing after wild price swings in the past quarter. Gold gained along with other commodities and world stocks.

Spot gold rallied more than 1 percent to $1,658.55 an ounce and was at $1,656.90 by 1118 GMT, after falling more than 2 percent last week. U.S. gold rose more than 1.4 percent to $1,660.5 before easing to $1,656.

"The equity markets are rising, the rest of commodities are rising, but the gold price is not coming under pressure. It's also probably pointing to the possibility that the situation could again become critical," Commerzbank analyst Eugen Weinberg said.