NEW YORK: Gold rose on Monday, set to snap two straight losing sessions, boosted by renewed physical demand related to Diwali, India’s major bullion-buying event this week.

Earlier, gold rose to a high of $1,248.44 an ounce, near a one-month high as physical bullion demand picked up ahead of Diwali on Wednesday and the start of the Indian wedding season, when demand is traditionally the strongest.

Last week, the precious metal posted a second straight weekly gain despite closing lower on Thursday and Friday as global economic worries triggered safe-haven bids.

However, a subsequent recovery in equity markets and resilient growth in the US economy could pressure gold prices in the near term, analysts said.

Spot gold was up 0.5 per cent at $1,244.30 an ounce by 1603 GMT.

US COMEX gold futures for April delivery were up $5.80 an ounce at $1,244.80.

Published in Dawn, October 21st , 2014