Sharjah24 - Reuters: Following last week's steep drops, gold prices increased by more than 1% on Monday as a dollar surge stalled and market participants awaited this week's remarks from Federal Reserve officials for additional hints on the direction of U.S. interest rates.
Spot gold firmed 1.2% to $2,591.16 per ounce by 0444 GMT, after falling to its worst week in more than three years on Friday.
U.S. gold futures were up 1% at $2,595.70.
The dollar was flat after rising 1.6% last week. A weaker dollar makes bullion less expensive for buyers holding other currencies. [USD/]
"Gold prices are due for a slight recovery following recent bout of hefty sell-offs and we may expect some drift higher with some rollover in the dollar," said IG market strategist Yeap Jun Rong.
"We can expect less-dovish rhetoric from U.S. policymakers in December, as the Fed sets the stage for a potential rate hold in January. This has not been fully priced in by markets yet, so any need for recalibration may still pose an obstacle for gold."
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