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Spot gold climbed about 0.7 percent to $1,230.78 per ounce at 0725 GMT, having touched its highest level since Nov. 7 at $1,231.34 earlier in the session.

U.S. gold futures were up 0.8 percent at $1,235.2 per ounce.

• “Dollar has edged down from its high, supporting gold,” said Hareesh V, head of commodity research at Geojit Financial Services, adding that the market would keep a close watch on what the U.S. and China intend to do during and after the 90-day ceasefire period.

The dollar index, which measures the greenback against a basket of six major currencies, was down about 0.5 percent.

The U.S. currency has been the preferred safe haven this year as the U.S.-China trade war unfolded against a backdrop of higher U.S. interest rates, denting the bullion’s appeal.

However, the greenback came under pressure last week after Federal Reserve Chairman Jerome Powell said interest rates are just below neutral, raising expectations that the U.S. central bank is closer to the end of its rate hike cycle.

• “The over pessimism in bullion space on account of interest rate moving up is overdone and this is the right time to accumulate gold,” said Kunal Shah, head of research at Nirmal Bang Commodities in Mumbai, India, adding, “by December 31 we can see COMEX gold at $1,250.”

• If the Fed is worried about growth and makes it known more clearly, then the market could possibly see a further boost to gold, said John Sharma, an economist with National Australia Bank (NAB).

Powell is scheduled to testify before a congressional Joint Economic Committee later this week.

• Among other precious metals, palladium gained nearly 1 percent to $1,188.49 per ounce, after having crossed the $1,200 mark for the first time on Friday.

• Spot silver climbed 1.6 percent to $14.40 per ounce, while platinum rose nearly 2 percent to $812.10 per ounce.