Gold prices rose on Monday, erasing all of the previous week's losses, as a weaker dollar and the resilience of a key chart level removed some downward pressure, while the return of Chinese buyers to the market also lent support. Prices bounced after falling for a fourth week to a two-month low on Friday, following an upbeat reading of US wage growth and unemployment that supported expectations for a US interest rate hike in December, pushing the dollar and Treasury yields higher.
Gold's resilience above its 200-day moving average at $1,253 an ounce also provided some technical support. Meanwhile, the dollar fell below a 10-week high, while geopolitical concerns centered on North Korea and Spain supported gold prices. Spot gold was up 0.6 percent at $1,283.16 an ounce by 2:33 p.m. EDT (1833 GMT), while US gold futures for December delivery settled up 0.8 percent at $1,285.
"I think it's mostly technical in nature," said Rob Haworth, senior investment strategist at US Bank Wealth Management, adding that geopolitical concerns remain and are also supportive. Among other metals, silver was up 0.7 percent at $16.89 an ounce, while platinum was up 0.3 percent at $915.75 an ounce and palladium was 0.8 percent higher at $927.50.
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