Gold to reach its highest price in more than a month

Platinum, mainly used in auto catalysts, rose to levels not seen since August 2008, while silver tracked gold to reach its highest price in more than a month. With Japanese markets closed, volume was thin.
Gold was quoted at $1,154.30 an ounce by 0637 GMT, up $16.40 from New York's notional close on Friday. It rose as high as $1,157.65 an ounce, its strongest level since December 8 -- but still below a lifetime high of $1,226.10 hit in early December.
"The fact that the dollar has weakened has obviously helped to sustain its rally. We are going to be looking toward the $1,200-level again," said Darren Heathcote, head of trading at Investec Australia in Sydney.
NYMEX crude for February delivery rose 75 cents to $83.50 a barrel, boosting gold's appeal as a hedge against inflation, as China's crude oil imports surged to a monthly record in December.
U.S. gold futures for February delivery hit an intraday high of $1,163 an ounce, their best level since December 8, before slipping to $1,154.7 an ounce, still $15.8 higher than the previous close.
The U.S. dollar dropped on Monday, suffering its biggest fall in six weeks in the wake of disappointing U.S. jobs data, while the Australian dollar soared on the back of strong export numbers from China.
"I guess people used the news from China as some kind of excuse to push up gold," said a bullion dealer in Hong Kong, adding that low U.S. interest rates are also a factor.
"Buying interest is still around because it seems the chance of an increase in interest rates in the first half of this year is fading," he said.
Friday's disappointing U.S. employment report was also seen by dealers as a bullish signal for gold.
Jewelers stayed away from the physical market as gold firmed but sales of scrap were limited, suggesting that holders were still waiting for further increase in bullion prices. Premiums for gold bars were steady in Asia.
The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings fell to 1,119.541 tons by January 8, down 3.962 tons from the previous business day.