Gold prices rose to a nearly one-week high on Monday as a slight pullback in the U.S. dollar and escalating tensions in the Middle East lifted bullion's safe-haven appeal.
Spot gold was up 0.3% at $2,019.99 per ounce, as of 0530 GMT, hitting its highest since Feb. 13.
U.S. gold futures rose 0.4% to $2,031.50 per ounce.
"Given recent geopolitical developments that calls for tensions to drag on for longer, the yellow metal is finding some renewed traction on safe-haven flows," said IG market strategist Yeap Jun Rong.
A UK-registered cargo ship reported being under attack in the Bab al-Mandab Strait off Yemen on Sunday, while UK Maritime Trade Operations agency reported crew abandoning a ship off Yemen after an explosion.
The dollar index was down 0.1%, making greenback-priced bullion more affordable to overseas buyers.Â
Spot gold may rise into a range of $2,027 to $2,031 per ounce as it has climbed above a falling channel, according to Reuters technical analyst Wang Tao.Â
Market sentiment was also lifted after top consumer China resumed trade after the week-long Lunar New Year holidays.
"The FOMC, or Federal Open Market Committee, minutes will be on watch for greater cues on Fed's policy outlook, with any hawkish take from policymakers likely to renew jitters of rates potentially being kept high for longer and that may not be good news for gold prices," Jun Rong said.
Focus shifts to minutes from the U.S. Fed's January policy meeting, due on Wednesday, for more clues on when it could begin cutting interest rates.
Fed Bank of Atlanta President Raphael Bostic said that while he needs more data to convince him inflation pressures are truly falling, he's open to lowering rates at some point in the next few months.
Markets are currently pricing a 77% chance of a cut in June, according to the CME Fed Watch Tool. Lower interest rates decrease the opportunity cost of holding bullion.
Spot platinum dipped 0.3% to $903.04, palladium rose 0.7% to $956.66, while silver fell 1.2% to $23.12 per ounce.