SINGAPORE (Commodity Online): Gold prices soared in the initial trading on Monday, dismissing the prediction that the yellow metal would suffer a major correction in the coming months. Analysts forecasted that the gold might suffer heavy losses after prices broke below $1100 for a while a few days back.

US dollar tumbled sharply today against the major currencies, particularly against Euro. Gold, crude and other dollar dominated commodities are boosted on the fall of US dollar.

The COMEX Gold futures for February topped a one month high of $ 1163 an ounce. COMEX Gold currently trades at $1152.80 an ounce, up $13.90 per ounce from the previous close after hitting a high of $1163 per ounce.

US Dollar sank to a three week low in the Monday morning trades, sending crude prices way above $80 per barrel- a critical watershed and further gains look in the offing for the commodity now that this mark ahs been overcome with a vengeance.

Start trading in commodities from as low as $50. Join now

The greenback continued to suffer from a dismal non-farms data on Friday and fell to 1.4433 in intraday moves. Crude-oil futures climbed past $83 per barrel on Globex, bringing back the hedge against inflation fallacy to the fore yet again.

Gold prices jumped to their highest in more than a month on Monday on fund buying driven by stronger-than-expected Chinese import data, firm oil prices and a drop in the U.S. dollar against other currencies.

U.S. gold futures for February delivery hit an intraday high of $1,163 an ounce, its best level since Dec. 8, before slipping to $1,154 an ounce, still $15.1 higher than the previous close.

Friday's disappointing U.S. employment report was also seen by dealers as a bullish signal for gold. The dollar slipped on Monday after posting its biggest loss in six weeks last week on disappointing U.S. jobs data, while the Australian dollar rallied on strong exports to China.