SINGAPORE (REUTERS) - Gold rose on Monday (Nov 16) as investors sought safety in the metal following Friday's deadly attacks in Paris and a risk-off sentiment that sent US stock futures lower.
Spot gold rose 0.6 per cent to US$1,089.40 an ounce by 0032 GMT.
US gold rose 1 per cent to a session high of US$1,091.70. In the first 10 minutes of trade, just under 3,000 lots changed hands, which is equivalent to US$316 million. That's almost 10 times the 300-lot average for the opening 10 minutes over the past two months, according to Reuters calculations.
Silver, platinum and palladium all gained about 1 per cent each.
Multiple attacks in Paris on Friday killed more than 130 people, prompting France to launch air strikes in Syria against Islamic State, which claimed responsibility for the attacks.
US stock futures were sharply lower and the euro skidded in early Asian trading on Monday, with stocks expected to take their cue from poor investor appetite for risk after the Paris assault and Wall Street's steep losses.
Gold is typically seen as a safe-haven asset during times of uncertainty. Persistent weakness in stocks could further boost bullion.
Before Monday's gains, gold had fallen for 12 sessions out of 13 on increasing bets that the Federal Reserve would hike US rates next month. Rising rates tend to weigh on gold, as they lift the opportunity cost of holding non-yielding assets while boosting the dollar.
Data on Friday showed US retail sales rose less than expected in October, suggesting a slowdown in consumer spending that could temper expectations of a strong pickup in fourth-quarter economic growth. Producer prices slipped for a second straight month.
Still, the soft inflation and signs of slowing consumer spending are unlikely to deter the Federal Reserve from raising interest rates next month, economists said.
The time to hike US interest rates is "quickly approaching" and the Fed should not delay for fear of an adverse market reaction or uncertainty over long-run economic trends, a Fed policymaker said on Friday.
