Investing.com - Gold prices rose on Monday as bottom fishers snapped up nicely priced positions in the yellow metal on sentiments a recent selloff sent the commodity falling too far.
Proximity to U.S. elections kept some investors chasing dollar positions, which capped gold's gains.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were up 0.37% at USD1,681.45 a troy ounce, up from a session low of USD1,680.05 and down from a high of USD1,684.05 a troy ounce.
Gold futures were likely to test support at USD1,674.75 a troy ounce, Friday's low, and resistance at USD1,716.95, Friday's high.
Gold prices plummeted last week after the U.S. Bureau of Labor Statistics revealed the U.S. economy added 171,000 jobs in October, beating out analysts' calls for a gain of around 125,000.
The headline unemployment rate rose to 7.9% from 7.8% in September, as more unemployed workers jumped into the labor force by actively seeking work.
The news sparked sentiments that the Federal Reserve may hold off on any plans to beef up its ongoing round of quantitative easing, under which the U.S. central bank buys mortgage debt from banks, pumping the U.S. economy full of liquidity and weakening the dollar to spur recovery.
Gold and the dollar traditionally trade inversely from one another.
Gold prices also fell last week as investors began to stock up on safe-haven dollar positions ahead of Tuesday's presidential elections.
President Barack Obama and his challenger, Republican Mitt Romney, are neck and neck in the polls.
With no clear winner, investors have flocked to safety of the dollar before Tuesday's elections, which continued to bolster the greenback in early Asian trading on Monday.
Gold, however, rose on demand from bargain hunters.
Elsewhere on the Comex, silver for December delivery was up 0.70% and trading at USD31.072 a troy ounce, while copper for December delivery was down 0.11% and trading at USD3.479 a pound.
Proximity to U.S. elections kept some investors chasing dollar positions, which capped gold's gains.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were up 0.37% at USD1,681.45 a troy ounce, up from a session low of USD1,680.05 and down from a high of USD1,684.05 a troy ounce.
Gold futures were likely to test support at USD1,674.75 a troy ounce, Friday's low, and resistance at USD1,716.95, Friday's high.
Gold prices plummeted last week after the U.S. Bureau of Labor Statistics revealed the U.S. economy added 171,000 jobs in October, beating out analysts' calls for a gain of around 125,000.
The headline unemployment rate rose to 7.9% from 7.8% in September, as more unemployed workers jumped into the labor force by actively seeking work.
The news sparked sentiments that the Federal Reserve may hold off on any plans to beef up its ongoing round of quantitative easing, under which the U.S. central bank buys mortgage debt from banks, pumping the U.S. economy full of liquidity and weakening the dollar to spur recovery.
Gold and the dollar traditionally trade inversely from one another.
Gold prices also fell last week as investors began to stock up on safe-haven dollar positions ahead of Tuesday's presidential elections.
President Barack Obama and his challenger, Republican Mitt Romney, are neck and neck in the polls.
With no clear winner, investors have flocked to safety of the dollar before Tuesday's elections, which continued to bolster the greenback in early Asian trading on Monday.
Gold, however, rose on demand from bargain hunters.
Elsewhere on the Comex, silver for December delivery was up 0.70% and trading at USD31.072 a troy ounce, while copper for December delivery was down 0.11% and trading at USD3.479 a pound.