Gold tracks oil higher, gains may be capped

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FUNDAMENTALS

Spot gold added $6.45 to trade at $1,659.94 an ounce by 0025 GMT after posting its second-biggest weekly decline this year last week on fading expectations of more monetary easing in the United States.

U.S. April gold rose $4.8 to $1,660.60 an ounce.

India's gold imports could fall temporarily after the government doubled its import duty but the world's biggest buyer of bullion is unlikely to be deterred for long by a four percent levy.

The fall in gold prices has prompted one or more central banks to buy as much as four tonnes of bullion in recent weeks, according to an industry source and a Financial Times report on Friday.

MARKET NEWS

U.S. crude oil futures edged up early on Monday, extending the previous session's gains as concerns over Iran's disputed nuclear program continued to stoke supply disruption fears. <O/N>

The yen was on the defensive with the euro reaching a fresh five-month high against the Japanese currency, while the dollar nursed losses following a setback late last week. <USD/>

Japan's Nikkei share average gained, supported by buying of blue chip laggards as market players looked for fresh proof of a U.S.

">FUNDAMENTALSSpot gold added $6.45 to trade at $1,659.94 an ounce by 0025 GMT after posting its second-biggest weekly decline this year last week on fading expectations of more monetary easing in the United States.U.S"economic recovery before pushing the benchmark higher. .T

(Reporting by Lewa Pardomuan; Editing by Edwina Gibbs)