Gold prices rose around one percent on Monday.
Investors were keen to buy the precious metal because the euro weakened against the dollar due to concerns over euro zone debt and Ireland’s bailout package.
Another factor is geopolitical worries on the Korean peninsula. Tensions rose after Seoul said it will go ahead with live firing drills from a disputed island near its border with North Korea.
Gold, which has risen by over 25 percent so far this year, is on track for a fourth successive month of gains.
However dealers expect trading will slow as we get nearer to the end of the year and traders take profits as the Christmas holidays approach.