Gold can move in range of 26700-27000, according to SMC Global. Gold for December delivery has been trading up 0.15 per cent to 26850 level on Monday(10.27 am).

Investors initially bet the U.S. central bank would be compelled to delay raising rates given the fragility of the global economy, but buying soon evaporated on the view that the Chinese stimulus and upbeat U.S. data made a Fed rate hike more likely this year.

The Fed holds a policy meeting later this week. Though it is not expected to hike rates at this week's meeting, investors will be watching for clues on the Fed's take on the global economy and whether the central bank would raise rates at its December meeting.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.26 percent to 695.54 tonnes on Friday.