OREANDA-NEWS. February 04, 2015. Gold prices eased as buyers cashed in gains after the metal posted its biggest monthly rise in three years in January, but a shaky outlook for the global economy underpinned its appeal as a haven from risk.

Spot gold was down 0.5 percent at \\$1,276.80 an ounce at 1110 GMT, while U.S. gold futures for April delivery were down \\$2.00 an ounce at \\$1,277.20. It rose 8.4 percent last month, its best monthly performance since January 2012.

That rally was sparked by concerns over the European economy, after the Swiss National Bank scrapped the franc's peg to the euro, the European Central Bank announced quantitative easing, and Greece elected the anti-bailout Syriza party after a snap election.

Gains have been tempered however by a perception that the United States is still on track to raise interest rates for the first time in nearly a decade this year, lifting the opportunity cost of holding non-yielding gold while boosting the dollar.

"Midweek last week we saw a 3 percent fall in gold post the FOMC, based on fears that the United States is still on course to raise rates," Societe Generale analyst Robin Bhar said. "The market has had a good tailwind to it, and now there are a few more doubts creeping in that perhaps the rally was overdone. There is a bit of profit taking coming through."

"While it continues to hold above \\$1,250, it should ward off any deeper liquidation," he added. "(But) it could struggle now unless the headlines over Greece are so negative that that supports gold further, and we get more safe haven buying."

Traders will be closely watching the new Greek government's attempts to persuade a sceptical Europe to accept a new debt agreement. Finance Minister Yanis Varoufakis was due to meet his British counterpart George Osborne on Monday.

They will also be eyeing U.S. data due this week for further clues on the timing of a U.S. rate hike, including ISM manufacturing data later on Monday and non-farm payrolls data on Friday.

Data on Monday showed euro zone factory activity grew slightly last month as companies kept slashing prices, but a weakened currency did little to help drive new orders from abroad.

Among other precious metals, silver was down 0.4 percent at \\$17.15 an ounce. Platinum was down 0.6 percent at \\$1,227.55 an ounce, while palladium was up 0.9 percent at \\$775.60 an ounce.