Gold price tops 3-month high as fund buying picks up

Gold prices touched their highest in over three months on Monday, with signs showing money managers and exchange-traded fund investors are turning more positive on the precious metal.

Spot gold advanced 1.2% to $1,865.74/oz by 11:50 a.m. ET Monday, crossing the key $1,850/oz technical level for the first time since early February. US gold future also gained $1.5% to $1,865.80/oz on the Comex in New York.

According to government figures from last week, hedge fund managers have increased their long-only position in US futures and options by 12% from a week earlier, the most since last June.