Gold rose on Monday, erasing early losses as the dollar retreated from a two-month peak ahead of the U.S. presidential debates this week, although a stock market rebound capped gains in bullion.
Spot gold gained 0.3% to $1,865.32 per ounce by 10:53 a.m. EDT (1453 GMT), while U.S. gold futures added 0.4% to $1,873.
“Gold has started to recuperate losses as the dollar has eased and real rates have edged lower,” said Standard Chartered analyst Suki Cooper.
“There are plenty of risk events this week for gold to take its cue from, ranging from the first of three U.S. presidential debates to unemployment and inflation data,” she added.
President Donald Trump and former Vice President Joe Biden will face each other in their first presidential debate on Tuesday.
The dollar index .DXY eased 0.4% from a near two-month peak hit in the last session against a basket of currencies.
Gains in bullion were limited as the equities climbed, mainly boosted by data over the weekend showing profits at China’s industrial firms grew for the fourth straight month in August.
