The gold market is waiting to hear the latest news from the US Federal Reserve, whose policymakers will meet this week to discuss interest rates, reports the Associated Press.
It is widely believed that the reserve will cut interest rates by a quarter of a percentage point, which could lead to a rise in gold prices as it did earlier this year when interest rates were cut.
David Thurtell, metals analyst at BNP Paribas, said that he believes the decision, along with the current economic volatility, will push gold prices up in the longer-term.
"Sluggish mine supply, weak equity and property markets and a low US dollar should see gold trade in an $800 to $1,050 range over the next six months," he said, according to Reuters.
US interest rates have fallen to 2.25 per cent this year, from 5.25 per cent last summer.
Government reports about spending and employment are also expected to be released later this week.