SINGAPORE (Commodity Online) : Gold prices edged higher in Asian trade, despite weak physicals demand, Monday mainly after euro surged against the dollar.

Spot gold was seen trading at $1056.65 an ounce at 12.00 noon Singapore time, from New York's notional close of $1053.95 an ounce.

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US gold futures for December delivery erased earlier losses to hold steady at $1057.2 an ounce, compared with $1056.40 on the COMEX division of the New York Mercantile Exchange.

After hitting record highs above $1070 per ounce on October 14, Gold prices have traded in a narrow range, centering around $1060, with support near $1040.

Gold has gained on the dollar's decline because a weaker dollar boosts investor interest in gold as a hedge and makes bullion cheaper for non-dollar holders, but buying momentum has lost some of its steam given weak jewellery demand and high prices spurring scrap sales.

The euro rose to a 14-month high of $1.5064 on Monday. Gold eased on Friday as the dollar rose against the euro and sterling on a strong US housing report and bleak UK economic data.

Meanwhile, the world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, stood at 1108.094 tones as of October 23, unchanged from the previous business day.

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