Gold prices hit an eight-month high on Monday, as the dollar slipped on bets for slower US interest rate hikes, while investors also cheered top bullion consumer China reopening its borders.

Spot gold rose 0.4 per cent to $1,873.72 per ounce by 0951 GMT, its highest since May 9, 2022. US gold futures gained 0.4 per cent to $1,877.40, reports Reuters.

Making gold cheaper for overseas buyers, the dollar index raised hopes for a slowdown in the pace of rate hikes by the Federal Reserve.

Elevated rates dampen interest in non-yielding gold, as they did for the majority of 2022.

"Data suggests that the Fed's cumulative tightening in 2022 is starting to have its effects felt on the economy and that the Fed can afford to slow its pace of tightening," said OCBC FX strategist Christopher Wong.

Traders will now assess Fed Chair Jerome Powell's speech at a central bank conference in Stockholm on Tuesday and US consumer price index data due later this week.    

China held 64.64 million fine troy ounces of gold, as of end-December.

Bd-pratidin English/Golam Rosul