Gold prices climbed towards $1220 an ounce mark in Asian trade Monday after concerns over economic recovery prompted safe haven buying.

Gold for immediate delivery was seen trading at $1219.02 an ounce at 12.00 noon Singapore time while U.S. gold futures for December delivery was at $1,221.1 on the comex division of Nymex.

Meanwhile, holdings in the world's largest bullion-backed ETF, SPDR Gold Trust, were unchanged, suggesting that some investors were happy to hold on to bullion after recent U.S. economic data pointed to weakness in the economy.

However, analysts said dollar recovery could prevent further gains by the precious metal.

Asian stocks also showed declining trends Monday with Japan's Nikkei average fell 1.2 percent as figures showed Japan's economy slowed sharply from the previous two quarters and after U.S. stocks closed out their worst week in six with a whimper on Friday on poor economic data.

On Friday,US gold futures ended 10 US cents lower but the metal has gained for two consecutive weeks for the first time since June, as weak jobs data prompted investors to buy gold as an alternative asset.

Comex December gold futures settled down 10 cents at $1,216.60 an ounce after ranging between $1,212.30 and $1,219.80 an ounce.
Bullion benefited from higher-than-expected US jobless claims and the Federal Reserve's downgrade of its economic outlook - traders.

Comex September silver ended up 4.4 cents at $18.109 an ounce, taking the lead from gold.

Silver prices ignored protests disrupting output at two of the world's top silver mines in Bolivia. The day's trade ranged between $17.960 and $18.180 an ounce. Final volume was 20,962 lots.

Japan Gold