Gold rises off 6-month low; China buys after holiday

ECB AWAITED

Further gains were capped by euro weakness against the dollar.

The market was awaiting an address by European Central Bank President Mario Draghi to the euro zone's parliament and a possible hint on the outlook for the single currency after a G20 meeting.

Financial leaders from the world's 20 biggest economies promised on Saturday not to devalue their currencies to boost exports, aiming to defuse talk of currency wars that had been roiling the markets.

Hedge funds and some big speculators cut their bullish bets on U.S. commodities, taking aim particularly at gold, which has lost some of its lustre this year, data released on Friday showed.

A raft of business surveys this week will be studied for confirmation of hopes that a dire fourth quarter of 2012 marked a cyclical trough for the world economy.

In other precious metals, spot platinum was up 0.2 percent to $1,680.75 an ounce after declining to a two-week low of $1,668 in the previous session. Palladium was down 0.2 percent at $754.75, well below the $775 hit on Wednesday, its best since September 2011.

Spot silver rose 0.4 percent to $29.95 an ounce, having fallen to a six-week low of $29.65 on Friday.