Gold prices remained steady in Asian trade Monday as the dollar dropped further amid safe haven buying by investor's.

Gold for immediate delivery was at $1203.45 an ounce while U.S. gold futures for December delivery were hardly changed at $1,205.5 an ounce.

Analysts said the precious yellow metal took advantage of a weak dollar and worries about the health of the U.S. economy that spurred bargain hunting, but sales of scrap were likely to cap gains.

The dollar fell toward a 15-year low against the yen while the Nikkei share average fell 1.1 percent ahead of this week's Federal Reserve policy-setting committee meeting, with investors concerned the U.S. economy is slipping back from recovery and threatening to take the rest of the world with it.

The U.S. economy lost 131,000 jobs in July, boosting talk the Federal Reserve could consider further easing monetary policy, a move that would strengthen gold's appeal as an alternative investment.

The market was closed in Singapore for a National Day holiday, while the physical market was also slow in Tokyo because of the absence of demand from jewelers and the industrial sector.

On Friday, gold rose as high as $1,212.61, its highest since mid-July, on safe-haven buying driven by the dismal U.S. data and physical buying from jewelers and investors in Asia.

Gold for December delivery rose $6.00 to settle at $1,205.30 an ounce. Silver for September delivery rose 15.1 cents to settle at $18.472 an ounce. Copper for September delivery settled 1.05 cents lower at $3.3430 a pound.

Gold