Gold, silver close higher

Gold and silver prices rose on Monday as the US dollar weakened.

Gold closed US$19.85 higher at US$1,285.75/oz in London, with silver up 23 cents at US$17.32/oz, as the greenback slipped to around 82.2 euro cents after peaking above 82.5 euro cents on Friday.

Gold's rise was kept in check by a rally in the US stock market, which tempered buying interest, Kitco News' Jim Wyckoff said. "Still, gold continues to show the resilience required to extend the present near-term price uptrend," he added.

But the possibility of a sell-off remains, according to FastMarkets' William Adams. "The fact more fund longs did not take profits suggests underlying confidence but we still see potential for a profit-taking sell-off; because of the numbers, such a sell-off could be aggressive and lead to a downward spike."

Gold remains below its recent high of US$1,294/oz set earlier in May, with silver's recent peak of US$17.85/oz reached in late April.