Gold climbed on Monday as geopolitical concerns surrounding Russia drew some investors into the safe haven, outweighing pressure from a hawkish interest rate outlook.

Spot gold rose 0.43% to $1,929.54 per ounce by 0951 GMT, while gold futures were up 0.5% at $1,939.90.

Bullion slumped nearly 2% in the previous week as hawkish comments from Federal Reserve officials signalled more rate hikes to tame sticky inflation.

"The markets are trying to adjust to the heightened geopolitical worries that unfolded in Russia this weekend," said Ole Hansen, head of commodity strategy at Saxo Bank.

Higher interest rates make non-yielding gold less appealing.

The dollar index edged 0.2% lower, making gold cheaper for holders of other currencies, while competing safe-haven asset Treasury yields declined to a two-week low.

Source : Reuters