The US dollar lost some grounds against a host of other currencies led by the recovering Euro, driving up on Monday's closing gold prices in what analysts call as the usual movement of the precious metal whenever the mighty dollar falters and the market signals the dreaded uncertainty that yet again gave gold considerable gains.

Following four successive retreats that was sustained at the start of the week, gold recovered its lustre and convinced investors of its reputation as the must go investment when times are rough as it collected 60 US cents or 0.1 percent of value for the December futures to settle at $US1247.10 per ounce on the Comex in New York Mercantile Exchange.

Analysts said that the gains were reduced by the rally seen in equities earlier, which naturally led to reduced demand for haven assets, fuelled largely by the monstrous output seen in China and international central banks latest decision to allow maximum eight years in meeting capital requirements.

On the other hand, Bill O'Neill of Logic Advisors said that gold still offered soothing relief for most investors still haunted by the fragile recovery seen in most of economies as the Euro debt crisis still casts significant shadow on market confidence, prompting some traders to tighten their grip on the precious metal in the event of a revisiting global financial meltdown.

The lingering uncertainty has been applying considerable pressures on gold, according to Stephen Platt of Archer Financial Services in Chicago, as he added that the upsurge of interest seen lately has been stretching the precious metal's supply that mostly resulted to its soaring market prices.

Analysts said that investors have been rushing to better yielding though riskier currencies lately, which brought down the US dollar and offered enough traction for other valuable metals to add up some value as the December silver closed 1.5 percent higher at $US20.151 per ounce while both the Nymex October platinum and December palladium jumped by 0.5 percent and 1.9 percent respectively in New York.