1st LD Writethru: Gold up on poor U.S. equities performance

Gold futures on the COMEX division of the New York Mercantile Exchange rose sharply on Monday as weaker U.S. equities gave support to the precious metal.

The most active gold contract for April delivery rose 40.2 U.S. dollars, or 3.47 percent, to settle at 1,197.90 dollars per ounce.

The U.S. stocks dropped Monday as crude prices extended the loss. Analysts noted that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.

The U.S. Dollar Index also fell Monday. The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.

As there was no economic data released on Monday, traders have been focused on the price of oil and it's impacts on the U.S. economy. Analysts believed that the U.S.-based energy sector is likely to take severe losses, and have been pulling their money out of that sector, leading to a domino effect that has impacted to rest of the market.

Further economic data is expected to be released later this week. Investors will be watching very carefully, as any sign of a downturn will send more traders towards gold's safe haven properties.

Silver for March delivery added 64.8 cents, or 4.38 percent, to close at 15.426 dollars per ounce. Platinum for April delivery rose 25 dollars, or 2.77 percent, to close at 928.70 dollars per ounce. Endit