The yellow metal gained for the third straight session on concerns with regard global economic recovery which spurred demand on the metal as safe haven.

Last week, worries dominated markets causing stocks to drop and safe-haven assets to soar after a series of lackluster data from major economies, where the buoyant euro zone GDP could not offset the impace of fears.

Spot gold is trading at $1218.36 an ounce after recording a high of $1220.61 and a low of $1213.70.

Today's data showed that the Japanese economy expanded 0.4% only in the year ending June relative to median estimates of 2.3% which pulled most Asian stocks to the downside and sent oil to $75.50 a barrel from the day's high of $75.92.

Gold advanced last week but gains were capped by the dollar's appreciation which affected gold's appeal as alternative investment.

Today, the U.S. dollar did a downside correction after last week's rise; the dollar index, which tracks the dollar movements versus a basket of major currencies, reversed from a high of 83.01 to 82.50.

Still, investors resort to gold when there are fears in markets as global economies currently pass through embarrassing phase to shore up their economies.

On Friday, gold added $1.90 or 0.16% to close at $1215.05 an ounce. Gold price was set in London on Friday at $1215.00 per ounce during the PM fixing inclining from $1214.25 during the AM fixing. SPDR gold trust, the world's largest exchange-traded fund backed by bullion, remained unchanged at 1,286.70 on August 13.

Technically speaking, the breakout of $1200 level last week and daily closing above it paved the way for the yellow metal to rise further today.

Among other precious metals, platinum soared to $1528.50 from $1525.20 on Friday; palladium inclined to $477.00 from $474.70; and silver slipped to $18.19 from $18.21, as of 07:55 GMT.

Ecpulse

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