Gold recouped some of the previous session's hefty losses on Monday as the U.S. dollar steadied and uncertainty over a U.S. tax reform plan stoked risk aversion, pulling equities from their recent record highs. Prices remained stuck in a narrow range, however, as investors awaited more clues on the path of U.S. interest rates.
Spot gold was up 0.2 percent at $1,279 an ounce, while U.S. gold futures for December delivery settled up 0.4 percent at $1,278.90 per ounce. The metal has remained broadly within $15 an ounce of its 100-day moving average, currently at $1,277 an ounce, for most of the last month.
Gold fell 0.7 percent on Friday in its biggest one-day drop since Oct. 26, weighed down by a rise in U.S. Treasury bond yields. Yields rose, steepening the yield curve, as traders closed out some curve-flattener positions. While the increase in yields supported the dollar early on Monday, it later pared gains.