Gold bounces slightly as stocks and dollar ease

Gold futures on the COMEX division of the New York Mercantile Exchange rose slightly on Monday as U.S. equities lost ground and the dollar eased.

The most active gold contract for December delivery gained 3.4 U.S. dollars, or 0.28 percent, to settle at 1,218.8 dollars per ounce.

The three major stock indices posted midday losses, while a brief spike in the U.S. dollar pushed investors toward safe havens. The dollar index, rising more than 7 percent since July, eased after hitting its fresh 4-year highs on Monday.

Gold rallied with thin trading as investors were digesting mixed economic reports at the start of a busy week of economic data.

Analysts say gold could be in for another rough week if a string of major economic data, notably the closely-watched U.S. nonfarm payroll report for September at the end of this week, shows further improvement in the U.S. economy. Gold futures capped off a stretch of four-straight weeks of losses amid a climbing dollar and relatively upbeat economic data.

Silver for December delivery gained 3 cents, or 0.17 percent, to close at 17.567 dollars per ounce. Platinum for January delivery rose 8 dollars, or 0.65 percent, to close at 1,309.5 dollars per ounce.