LONDON, Oct 5 (Reuters) - Gold prices extended gains above $1,000 an ounce in Europe on Monday, supported by weakness in the dollar in the wake of a meeting of Group of Seven finance ministers at the weekend. The softer dollar is boosting interest in gold as an alternative asset, analysts said, as well as making the precious metal cheaper for holders of other currencies.
Spot gold XAU= was bid at $1,004.65 an ounce at 0929 GMT, up from $1,001.30 late in New York on Friday. U.S. gold futures for December delivery GCZ9 on the COMEX division of the New York Mercantile Exchange edged up $1.70 to $1,006.00 an ounce.
As well as the weak dollar, gold is also being supported by fears over the sustainability of the recent stock market rally. U.S. equities closed down and European stocks hit a four-week closing low on Friday after weak U.S. non-farm payrolls data.
"Gold is in a period of going sideways, consolidating before the next significant move," said Mitsubishi precious metals strategist Tom Kendall.
"It is (being influenced by) the dollar, but there is also a degree of nervousness among equity investors," he said. "There are some pieces of news that are keeping people wary
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