Gold Higher on Firm Oil; Capped Below $800

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"The dollar is not playing the game today and this is the reason why gold is not quite moving to $800 or higher," Commerzbank commodities analyst Eugen Weinberg said.

Gold rose on Monday with oil prices, but the dollar's slight rally against the euro sapped momentum and capped gains below the $800 mark.

Liquidity in Europe was thinner as several traders and analysts were attending the annual London Bullion Market Association conference in Mumbai.

Some analysts also cited risk aversion across other financial markets as a factor making some investors reluctant to take major bets one way or another.

Spot gold firmed to $789.00/789.70 per troy ounce by 6:45 a.m. EST, compared with $784.80/$785.50 quoted in late New York on Friday, having hit an intraday high of $793.90 earlier.

"The dollar is not playing the game today and this is the reason why gold is not quite moving to $800 or higher," Commerzbank commodities analyst Eugen Weinberg said.

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