Gold rose to $890.40/891.40 an ounce from $886.90/888.30 an ounce early in Asian trade as surging oil prices boosted the metal's appeal as a hedge against inflation and helped it defy a firming dollar.
Gold has lost more than 13% in value since spiking to a lifetime high of $1030.80 an ounce on March 17. It was been struggling to regain $900 and hit a three-week low of $877.60 on Friday before rebounding after oil hit an all-time peak high.
Gold has gained on speculative buying spurred by record high oil prices and expectations of more rate cuts in the United States, which reduces the dollar's appeal and makes gold more appealing for investors seeking an alternative investment.
Oil struck a record high at $119.93 a barrel on Monday, extending the previous session's rally, as a strike closed a major British oil pipeline and as new violence in Nigeria reignited supply fears.
Gold futures for June delivery on the COMEX division of the New York Mercantile Exchange added $5.3 an ounce to $895.0 an ounce.
Spot platinum rose to $1,961.50/1,961.50 an ounce from $1,944/1,964 late in New York. It had fallen to $1,907 an ounce on Friday, its lowest since early April.
The new benchmark contract in Tokyo platinum futures April 2009, rose 165 yen per gram to 6450 yen, driven by a weaker Japanese currency.
Silver edged up to $16.93/16.99 an ounce from $16.83/16.89 an ounce. Spot palladium fell to $440/445 an ounce from $435.50/443.50 an ounce.
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