Gold prices rose on Monday after China's central bank added bullion to its reserves in November — ending a six-month hiatus in a buying binge that had provided a major pillar of support for the precious metal.

Bullion prices rose as much as 0.6% to trade just below $2,650 an ounce, after the People's Bank of China said Saturday it bought 160,000 troy ounces last month. The addition was the first since April, before the central bank halted purchases for 18 months that had helped prop up prices amid strong interest from global public institutions.

China led demand in the first quarter of this year, and is the top buyer in 2023, according to the World Gold Council. The resumption of purchases suggests the PBOC is still working to diversify its reserves and guard against currency depreciation, even with bullion prices at historically expensive levels. Traders also monitored developments in Syria over the weekend, after President Bashar al-Assad was ousted as rebel forces seized the capital Damascus. U.S. airstrikes hit dozens of Islamic State targets in the center of the country on Sunday as President Joe Biden warned that Assad's fall from power could open the door to a resurgence of Islamic extremism.

Gold prices surged to an all-time high above $2,790 an ounce in October, supported by the Federal Reserve's shift toward monetary easing, as well as rising safe-haven demand amid tensions in the Middle East and Ukraine. Prices have eased since then as the dollar strengthened following Donald Trump's victory in the U.S. election, but remain more than a quarter higher this year. Spot gold rose 0.4% to $2,643.58 an ounce as of 7:18 a.m. in Singapore, following a 0.4% decline last week. Silver, platinum and palladium prices edged up.

Source: Bloomberg