Gold jumped nearly 2 per cent Monday on fund buying that picked up on a weaker U.S. dollar ahead of an expected cut in U.S. interest rates and safe-haven bids due to credit market woes.

Spot gold rose as high as $812.20 an ounce, the highest since Nov. 28, and was last quoted at $808.00/808.70 by 2:15 p.m. EST (1915 GMT), against $794.90/795.70 late in New York on Friday, when it fell more than $8.

Most-active February gold on the Comex division of the New York Mercantile Exchange settled up $13.30 or 1.7 per cent to $813.50 an ounce.

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