Gold prices ticked up on Monday, extending gains from the last session as Federal Reserve Chair Jerome Powell's dovish remarks solidified expectations of an interest rate cut next month.
Spot gold rose 0.2% to $2,516.09 per ounce by 0027 GMT. US gold futures gained 0.2% to $2,551.30.
The dollar hovered near its lowest level in about eight months, making gold cheaper for other currency holders, while benchmark 10-year yields also slipped, Reuters reported.
On Friday, Powell signalled support for policy easing, saying that "the time has come" for the Fed to cut rates amid rising risks to the job market, even as inflation was in reach of the U.S. central bank's 2% target.
Traders have fully priced in a Fed easing for next month, with a 64% chance of a 25-basis-point cut and about 36% chance of a bigger 50-bp reduction, according to the CME FedWatch tool.
A low interest rate environment tends to boost non-yielding bullion's appeal.
