Gold was little changed above $1,200 an ounce on Monday with a softer dollar providing support for the safe-haven metal, but a lack of robust physical demand and uncertainty over the timing of a U.S. interest rate hike kept investors on edge.
Spot gold was flat at $1,203.66 an ounce by 0341 GMT, after gaining 0.6 percent on Friday. Activity was subdued with the metal trading in a $3.30 range, the smallest intraday trading range in over three months.
“Gold is stuck near $1,200 as there is more interest in equity, oil and currency markets,” said a precious metals trader in Sydney. “If the dollar drops further, gold could probably go up to $1,220.”