Monday saw a little increase in gold prices as investors anticipated U.S. inflation data following Fed hawkish stance last week, which sent bullion to dip to the lowest level in three weeks.

Spot gold added 0.1% at $1,939.19 per ounce meanwhile gold futures advanced by 0.3% to $1,943.40 per ounce.

Last week, gold experienced its lowest week in almost a month, falling 2.8% as Powell's hawkish comments dashed hopes for interest rate reductions.

A survey released on Friday revealed that household projections for inflation increased again while U.S. consumer mood declined for the fourth consecutive month in November.

Eyes this week will be on US consumer price index (CPI) data, which is scheduled for release on Tuesday and may have an impact on the Fed's view for interest rates.

Owing to a significant festival, gold demand increased in India last week; nevertheless, preliminary estimates indicated that sales were somewhat down from the previous year as some consumers were turned off by the higher prices.