Gold rises on physical demand

Gold futures on the COMEX division of the New York Mercantile Exchange rose Monday on physical demand from Asia.

The most active gold contract for December delivery rose 5.7 U. S. dollars, or 0.46 percent, to settle at 1,244.7 dollars per ounce.

Physical demand for gold from India is strong ahead of the country's Diwali Festival and start of the wedding season. Meanwhile, gold trading volume in China rose to its highest level since May 2013.

Worries over slowing global economic growth also triggered safe- haven demand for gold.

Gold holdings of SPDR Gold Trust, the world's largest gold-back exchange traded fund, rose 1.5 tonnes last week, its first weekly inflow since early September.

Market analysts are now divided on gold. Most of them believe the demand is set to abate in the near future, although the physical demand from Asia is strong at present.

Silver for December delivery gained 2.3 cents, or 0.13 percent, to close at 17.354 dollars per ounce. Platinum for January delivery climbed 6 dollars, or 0.48 percent, to close at 1,267.5 dollars per ounce.