Spot gold prices rose throughout the Asian session today, gaining 0.7% from Friday's close in New York to hit $654 per ounce just before Monday's opening in Europe.

Having risen last week against all major currencies, gold today spiked to £337.50 and €498.20 by the end of Tokyo trade.

Versus the Japanese Yen – the only world currency now higher against gold from one month ago – spot gold rose 6.4% at the Tocom today.

Gold futures for delivery in Feb. '08 held steady at the equivalent of $662 per ounce.

Meantime in Mumbai, Benchmark Asset Management Company today wrapped up its first allotment of shares in Gold BeES – India's first ever exchange traded gold fund (ETF).

The base price per gram equaled $21.39 – giving an ounce price of $665 even before the entry load of 1.5%.

(Why pay so much above spot? And why pay such huge fees on top? Click here for the truth about buying gold on trust alone...)

Short term, "gold will remain range-bound and $655 will be the next resistance," reckons Bharath K. Rekapalli, director of Global Financial Market in Hyderabad.

"The wide range of $630 to $690 is still valid," adds a Singapore dealer.

"I think people still want to buy gold but they may be waiting for a cheaper level. It looks like everyone also is waiting for everybody else to start first."

News from Australia says gold looks set to keep rising, however, as supply continues to fall.

Australian gold mining output fell to its lowest level in 13 years in 2006, according to a new report from consultants at Surbiton Associates in Melbourne.

Globally, Australia's gold output fell to third place behind the United States, down 5% from 2005 to 249 tonnes. (To read more about why gold output is shrinking worldwide, simply click here...)

On the currency markets, the US Dollar recovered further against the Japanese Yen early today.

Friday's employment data, showing growth in line with Wall Street expectations, may support a decision for "no change" in Fed interest rates when Ben Bernanke and his colleagues meet next week.

"I doubt it if people want to take aggressive positions [in gold]," said another Singapore dealer to Reuters earlier.

"Why don't we just wait until we clear the FOMC meeting? If there's indication the Fed is going to reduce the rates, then you might see gold getting a boost."

"The Dollar is strengthening against the Yen and now one has to watch its behavior against the Euro," added an Indian analyst.

But for now, even gold analysts remain fixated on the idea of one paper currency over another...rather than gold bought as a currency above them all.

Gold remains just one more asset class – alongside equities, bonds, real estate and cash. It fell sharply during the stock market panic seen after Shanghai equities sank 9% two weeks ago.

Whatever happened to gold as a "safe haven"? Click here to find out now...