Gold rose more than 1 percent on Monday, extending gains as geopolitical risks drove investors to safe-haven assets after the metal's third-straight weekly decline. The U.S. dollar dropped against a basket of currencies, also boosting gold.
"Geopolitical issues in Saudi Arabia over the weekend and into today drove the price of gold up," said David Meager, director of metals trading at High Ridge Futures in Chicago, citing investors who bought into gold as a safe haven.
Saudi Arabia's future king, Crown Prince Mohammed bin Salman, tightened his grip on power through an anti-corruption purge by arresting royals, ministers and investors including billionaire Alwaleed bin Talal who is one of the kingdom's most prominent businessmen.
The dollar dipped on Monday after its biggest weekly rise this year, while Germany's benchmark bond yield held near two-month low as investors awaited clues on the European Central Bank's asset purchase plans.
U.S. 10-year yields also hit their weakest in two weeks.