Gold firmed on Monday as markets reassessed the outlook for the U.S. economy after Donald Trump is inaugurated as President later this month, with the dollar steadying after the previous session's bounce.
The metal, which posted its biggest weekly increase in two months last week, lost some ground on Friday after a U.S. payrolls report supported the view that the Federal Reserve will raise interest rates this year, boosting the dollar.
However, gold found good support around $1,170 an ounce, the 23.6 percent retracement of its November to December decline. Spot gold was up 0.93 percent at $1,183.61 an ounce, while U.S. gold futures for February delivery settled $11.50 higher at $1,184.90.
The metal slid more than 12 percent in the last quarter as Trump's election victory boosted expectations that his tax and spending policies would boost the dollar and inflation, prompting more U.S. rate increases.