Gold rallied more than 2 percent on Monday, as investors rushed to safer assets after the bankruptcy of Lehman Brothers fuelled worries about the U.S. financial system and sparked talk of possible rate cuts.
A tumbling U.S. dollar further boosted precious metals with silver rising more than 2 percent and platinum firming around 1 percent.
PRICES
* Spot gold was at $778.50/779.70 at 0640 GMT versus $765.75/767.75 an ounce late in New York on Friday.
* Silver was at $10.93/11.01 from $10.85/10.95.
* Platinum at $1,215.00/1,225.00 from $1,204.50/1,224.50.
* Palladium at $244/249 from $242.50/250.00
DATA RELEASES DUE
* U.S. August industrial output due at 1315 GMT.
MARKET NEWS
* The U.S. dollar tumbled in Asian trade as Lehman Brothers (nyse: LEH - news - people ) said it would file for bankruptcy, heightening concerns over the U.S. financial system's stability and sparking talk of a possible Federal Reserve rate cut.
