LONDON: Gold edged back above $1,270 an ounce on Monday as a steadier tone to the dollar and a drop in bond yields tempted some buyers back to the metal after its third straight weekly decline.
Prices remained under pressure from expectations that the Federal Reserve is on track to lift US interest rates for a third time this year next month.
Spot gold was up 0.1 percent at $1,271.32 an ounce at 1030 GMT, while US gold futures for December delivery were up $2.60 an ounce at $1,271,80.
The dollar steadied on Monday after its biggest weekly rise this year, while Germany's benchmark bond yield hit a near two-month low as investors awaited clues on the European Central Bank's asset purchase plans. US 10-year yields also hit their weakest in two weeks.
Gold was therefore set for another uneventful day despite surrounding event risk linked to US President Donald Trump's visit to Asia, Saxo Bank's head of commodity research Ole Hansen said.
"Gold remains stuck in a $1,263 to $1,282 range, with lower bond yields being offset by a stronger dollar," he said.
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