Gold prices rose nearly 1% on Monday after last week's sharp decline, as a rally in the dollar paused, while market players awaited comments from Federal Reserve officials for more clues on the U.S. interest rate path.

Spot gold firmed 0.9% to $2,584.80 per ounce by 0718 GMT, after falling to its worst week in more than three years on Friday.

U.S. gold futures were up 0.8% to $2,589.90.

The dollar was flat after rising 1.6% last week. A weaker dollar makes bullion less expensive for buyers holding other currencies.

"Gold prices are due for a slight recovery following recent bout of hefty sell-offs and we may expect some drift higher with some rollover in the dollar," said IG market strategist Yeap Jun Rong.

"We can expect less-dovish rhetoric from U.S. policymakers in December, as the Fed sets the stage for a potential rate hold in January. This has not been fully priced in by markets yet, so any need for recalibration may still pose an obstacle for gold."

At least seven U.S. central bank officials are due to speak this week. Strong U.S. economic and inflation data continue to reshape the debate among Fed policymakers over the pace and extent of rate cuts as investors last week further downgraded their expectations for a rate reduction in December.

Data on Friday showed that U.S. retail sales increased slightly more than expected in October, highlighting the economy's resilience.

Higher interest rates reduce the appeal of holding non-yielding bullion.

"We are now bearish towards gold, and expect prices to range between $2,200 and $2,600 over fourth quarter to first quarter of 2025," BMI analysts said in a note.

Spot silver rose 1.4% to $30.64 per ounce, platinum was up 1.5% at $949.48 and palladium climbed 1.3% to $963.57.

 - Reuters