Gold rose over 1 percent on Monday, recovering from 9-1/2 month lows, as the US dollar extended losses after touching a near 14-year high last week. Spot gold had gained 0.92 percent to $1,193.80 an ounce by 0532 GMT after climbing as high as $1,197.54 earlier in the session. The metal marked its lowest since February 8 at $1,171.21 per ounce in the previous session.
US gold futures were up 1.3 percent at $1,193.50 per ounce. The dollar index, which measures the greenback against a basket of currencies, was down 0.67 percent at 100.810 after slipping 0.2 percent in the previous session as US Treasury yields eased from recent peaks. "The dollar strength has eased somewhat and we may be seeing some buying interest re-enter the market," ANZ analyst Daniel Hynes said.
"There has been some heavy selling over the past couple of weeks, so there may be a touch of technical-based buying." The metal has fallen about 7 percent so far this month on the back of a stronger US dollar and surging bond yields as investors bet that US President-elect Donald Trump's policies would spur growth and inflation.
Gold was riding on dollar weakness and the support for the yellow metal sits around $1,180 an ounce, while resistance comes in at $1,200, MKS PAMP Group trader Sam Laughlin said. Traders also said supply concerns in China after a directive from the People's Bank of China to limit gold imports, kept premiums in Shanghai around $22, driven by buoyant demand. Gold premiums in top consumer China jumped to the highest in nearly three years last week on supply worries.
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