By 10:03 GMT, the price of gold in spot transactions rose 0.5% to $ 1773.05 an ounce, the highest level since early July.
US gold futures also rose 0.3 percent at $1,787.50.
The dollar fell, making gold less expensive for foreign investors. However, rising 10-year US Treasury yields limited non-yielding bullion gains.
“A weak dollar will make it easier for gold to make more gains, although today’s rise in nominal and real yields on US Treasuries is hampering bullion’s ability to extend last week’s gains,” said Han Tan, senior market analyst at Exinity.
Gold rose 2.2 percent last week, its best performance since March, after Federal Reserve Chairman Jerome Powell sounded a relatively hawkish tone following an expected 75 basis point interest rate hike.
Gold found some support from recent weak economic data, including an unexpected contraction in the US economy during the second quarter, and a slowdown in manufacturing activity in the Eurozone.
The monthly US jobs report due on Friday will be closely watched for its potential impact on interest rate hike plans.
For other precious metals, silver increased 0.76 percent to $ 20.35 an ounce, while platinum rose 1.7 percent to $ 904.90. Palladium jumped 1.6 percent to $2,162.89.
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