Prices of US gold futures marked higher on Monday as the dollar back some of their recent gains, but caution ahead of the policy meeting of the Federal Reserve later in the week.
Gold futures for June delivery were at $1,232.8 an ounce, up 0.23% from their last settlement.
Spot gold rose 0.2 percent to $1,234.36 an ounce, after dropping 1 percent on Friday as the dollar rallied.
The dollar rose to three-week highs against the yen overnight, but then reversed gains before the meeting of the central banks of the US and Japan the end of this week.
The US dollar index, which measures the greenback against a trade-weighted basket strength of six other major currencies, was dropped 0.18% to 94.94.
The Fed, which raised interest rates for the first time in nearly a decade in December, is expected to hold steady at the conclusion of its policy meeting two days on Wednesday.
Investors are watching rate statement the bank for information on the likelihood of increased interest rate June after Fed President Janet Yellen recently said that the central bank should adopt a conservative approach towards future rate hikes .
Gold has gained nearly 16 percent this year on speculation that the Fed may be unable to raise rates this year because of concerns about the Chinese economy and volatility in the global markets.
Economists are expecting the Fed to deliver a rate hike in June, and follow up with another the end of this year. But interest rate futures show less conviction, which highlighted the large gap among markets and politicians on the path of rates.
Analysts are warning gold might see further declines after the fall on Friday.
At the Multi Commodity Exchange, gold for delivery in June moved up by Rs 89, or 0.31%, to Rs 29,110 per 10 grams in futures trade today as speculators created positions amid positive cues from the global market.
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