Gold price on the rise

The price of gold is back above $1200 per ounce amid concerns over the Greek elections and lower oil prices.

U.S gold futures rose by 1.3 per cent on Monday to $US 1202.20 an ounce.

"What's happening in the euro zone, particularly concerns over a possible default by Greece … is contributing to an element ofshort-covering or indeed some safe-haven buying of gold, particularlyin euros," Mitsubishi Corp metals strategist Jonathan Butler said.

Gold bought in the euro is at its highest level since September 2013 at 1007.47euros per ounce.

Analysts said the precious metal is being bought as a safe-haven in light of the crashing oil price as well as a fall in copper and other risk markets.

A flurry of demand in China ahead of the Lunar New Year is also said to be behind the gold price hike.

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