Gold rose after the lowest price in more than a month attracted investors and spurred jewelry demand. Silver gained the most in most than a week.
Gold dropped 8.3 percent last week, touching $772.20 an ounce, the lowest price since Sept. 15. UBS AG said the metal will trade at $800 in one and three months, compared with previous forecasts of $925 and $975. In October, imports by India, the world's biggest buyer of bullion, rose for the straight second month.
Gold futures for December delivery rose $2.30, or 0.3 percent, to $790 an ounce on the Comex division of the New York Mercantile Exchange. The metal reached a record $1,033.90 on March 17.
Silver futures for December delivery climbed 35.5 cents, or 3.8 percent, to $9.69 an ounce, the biggest gain for a most- active contract since Oct. 8. The price dropped 12 percent last week.
India was the biggest buyer of precious metals last year, accounting for about 22 percent of total demand, according to London-based researcher GFMS Ltd.
Gold has fared better than other commodities as the credit crisis and the prospects of a global economic slowdown cut demand for raw materials.
A stock-market rally and stronger dollar may erode gold's appeal, analysts said.
