SAN FRANCISCO (MarketWatch) -- Gold futures closed $4 an ounce higher Monday, ending a three-session losing streak that has subtracted nearly $25 an ounce from the benchmark contract as traders remained wary over a jittery U.S. stock market, renewed weakness in the dollar and volatility in oil prices.
"I expect to see fairly listless range-bound trading this week," said Zachary Oxman, a senior trader at Wisdom Financial. But most likely, trading may be more prone to a "downside slant because of the continued risk of fallout from the sub-prime market and possible activity from central banks selling gold," he said in emailed comments.
Even so, "we're not looking too overbought at these levels and barring short-term pressure from prevailing stock market issues, I expect a run to $700-plus by year's end," he said.
Gold for August delivery added $4 to close at $664.10 an ounce in morning trading on the New York Mercantile Exchange. The contract, including the nearly $25 lost in the past three sessions, retreated by 3.6% for all of last week.
"Gold is back in an area of previously strong support, and given the still-bearish outlook for the dollar and the concerns toward U.S. subprime and credit risk, we still view dips as buying opportunities," said James Moore, analyst at TheBullionDesk.com, in a note to clients.
On the currency markets, the dollar was up against Japan's yen but fell against the euro. And crude prices for September delivery closed modestly lower Monday, after trading between a high of $77.26 and a low of $76.10 a barrel.
Meanwhile, U.S. stocks climbed Monday as investors brushed aside worries about tightening credit that sparked last week's brutal sell-off to focus on corporate profits
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