Gold up on technical bounce

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Monday as technical trading caused a bounce.

The most active gold contract for December delivery rose 12.4 U.S. dollars, or 1.05 percent, to settle at 1,190.80 dollars per ounce.

The precious metal was given support after touching a nine-month low.

Analysts believe the precious metal reached a key support level triggering what traders call a "dead cat bounce" where the precious metal reached such a low level that purchasing gold as a hedge against other bets made it more financially feasible than buying bonds.

Gold was given further support as the U.S. Dollar Index fell by 0.06 percent to 101.33 as of 1800 GMT.

The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.

Traders are waiting for the release of the gross domestic product report on Tuesday, the personal income and outlays report on Wednesday, the Institute for Supply Management's manufacturing index and weekly jobless claims on Thursday, and finally the big jobs report on Friday for November employment.

The reports coupled with several Fed speeches this week will give traders further hints on the economy's progress as it pertains to an interest rate hike beyond the boost from 0.50 to 0.75 which investors believe is due during the December FOMC meeting.

According to the CME Group's Fedwatch tool, the current implied probability of a hike from 0.50 to at least 0.75 is at 98 percent at the December meeting and 99 percent for the February meeting.

Silver for December delivery added 11.3 cents, or 0.69 percent, to close at 16.583 dollars per ounce. Platinum for January delivery rose 15 dollars, or 1.65 percent, to close at 923.30 dollars per ounce. Endit