Gold rose on Monday as a softer dollar helped the metal rebound from its biggest weekly loss this year, while traders awaited Federal Reserve Chair Jerome Powell's debut congressional testimony this week for clues on the next direction of trade.
The dollar index was flat on Monday, lifting gold after it fell 1.4 percent last week, its biggest weekly drop in 2 1/2 months.
MKS head of trading Afshin Nabavi attributed the rebound in gold to the dollar move, and a return of interest from major consumer China, where a week-long holiday ended last week.
"I think $1,361 may be on the cards," he said. "If we can break that level then we should be heading higher, otherwise $1,315-1,361 should be the trading range for the time being. $1,361 is the level we held last time gold tried to stage a rally."
European stocks rose 0.5 percent on Monday as investors bet Powell will flag up an intention to steer a steady course on U.S. monetary policy when he addresses lawmakers this week. That view weighed on U.S. 10-year Treasuries yields, dragging down the dollar.