Gold prices touch two-month high

Reports say that gold prices remained on their upwards trend from last week, and touched a two-month high on Monday. This movement is being attributed to the weak US data and additional inflows into the world's biggest bullion-backed exchange traded fund, reports add.

Spot gold rose 0.07 percent to $1,376.86 an ounce, after it touched a two-month peak of $1,379.81 earlier. The price rose the highest in five weeks last week, with a 5 percent rise. gain. SPDR Gold Trust, the largest gold-backed exchange-traded fund in the world, noted its holdings to rise 0.26 percent to 915.32 tonnes last week on Friday. Last week, it had posted a 0.4 percent climb in holdings, which was the first time its holdings rose in almost a year, reports add.

Also, hedge funds and money managers increased net long positions in gold and silver, reports add. Last week there was a rise in the dollar against the euro and yen, following a report indicating US consumers to be less optimistic, and thus creating an increase in risk aversion.