Gold prices increased amid buying demand after the yellow metal fell to a one-week low in the previous session. Market focus also turned to US employment data for signals regarding future interest-rate cuts.
Spot gold increased 0.8 percent to $3,961.85 per ounce. It had declined by more than 1.5 percent, reaching its lowest level since October 30.
US gold futures for December delivery increased 0.2 percent to $3,970.10 per ounce.