SINGAPORE: Gold rose on Monday in Asian trade as the dollar eased, recouping initial declines following a steep drop in the previous week, with focus on the release of US Federal Reserve minutes later this week.

Spot gold rose 0.3% to $1,949.09 per ounce by 0636 GMT.

Gold fell 4.5% last week in its biggest decline since March as investors reassessed positions after bullion retreated from a record peak of $2,072.50 scaled on Aug. 7. US gold futures gained 0.5% at $1,958.90 per ounce.

Gold does not "seem ready to resume the selloff in earnest as traders wait for FOMC meeting minutes and the fate of US fiscal stimulus negotiations," said DailyFx currency strategist Ilya Spivak.

"Prices may need to reclaim a foothold above the $2,000/oz figure to suggest near-term selling pressure has been neutralized."

Making gold more attractive for holders of other currencies, the dollar slipped as investors were relieved by a delay in the review of a US-China trade pact.

Gold has risen 28.4% so far this year as unprecedented global stimulus to ease the economic blow from the Covid-19 pandemic pushed investors to bullion as a hedge against inflation and currency debasement.