Gold struggled to recover from losses on Monday due to strength in the dollar and as investors took a cautious stance ahead of the Federal Reserve policy meeting later this week.
Spot gold was little changed at $1,231.20 an ounce by 0041 GMT, after dropping 1 percent on Friday.
The U.S. dollar rose to its highest level against the yen in three weeks on Friday after a report said the Bank of Japan is considering expanding its negative rate policy to bank loans and could cut rates further at its two-day policy review that ends on Wednesday.
Investors will also be closely monitoring the U.S. central bank's two-day policy meeting that concludes on Thursday.
Hedge funds and money managers raised their bullish position in COMEX silver contracts to a record high in the week to April 19 when prices surged to an 11-month peak, U.S. Commodity Futures Trading Commission data showed on Friday.
They also increased their net long positions in gold futures and options to the highest in 3-1/2 years.
Sentiment in the gold market remains volatile as a strong majority of retail investors continue to see higher prices in the near term, while there is growing uncertainty among market professionals, according the results of this week’s Kitco News Wall Street Vs. Main Street Gold Survey.
Retail investors remain bullish on gold for next week, although market professionals are more mixed, according to a pair of Kitco surveys. An online survey shows that 72% of 602 retail investors anticipate higher prices. However, of 18 market professionals who responded, five (28%) said they are bullish, and the same number are neutral. Eight (44%) said they are bearish.
Reference: Reuters, Kitco
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