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Gold rose over 1 percent on Monday, recovering from 9-1/2 month lows, as the U.S. dollar extended losses after touching a near 14-year high last week.

"The dollar strength has eased somewhat and we may be seeing some buying interest re-enter the market," ANZ analyst Daniel Hynes said. "There has been some heavy selling over the past couple of weeks, so there may be a touch of technical-based buying."

Gold was riding on dollar weakness and the support for the yellow metal sits around $1,180 an ounce, while resistance comes in at $1,200, MKS PAMP Group trader Sam Laughlin said.

Traders also said supply concerns in China after a directive from the People's Bank of China to limit gold imports, kept premiums in Shanghai around $22, driven by buoyant demand. Gold premiums in top consumer China jumped to the highest in nearly three years last week on supply worries.

Demand from South East Asia is also quite good and buying at lower prices could have driven prices higher, said Cameron Alexander, an analyst with Thomson Reuters-owned metals consultancy GFMS.

Reference: Reuters