Gold hits 2-week high

Gold rose to its highest level in nearly two weeks on Monday, backed by firm Chinese demand after a weekend interest rate cut in China aimed at shoring up the economy, which some analysts said could also benefit bullion.
“The prospects of better growth and stronger income should boost gold-buying in China,” said Howie Lee, an investment analyst at Phillip Futures in Singapore.
Spot gold was up 0.7 percent at $1,221.40 an ounce by 0701 GMT, just off a session high of $1,223.20, its loftiest since Feb. 17. It fell 5.5 percent in February, its biggest monthly loss since September.
Gold bounced back from a seven-week low last week following the return of Chinese buyers from the Feb. 18-24 Lunar New Year break.
The price has since found support above $1,200. Premiums for physical gold at the Shanghai Gold Exchange stayed firm at around $4-$5 an ounce over the global spot benchmark on Monday.