Gold climbed to $1,072.50 (+0.39%), but remained under pressure amid falling oil prices. The precious metal is often seen as a hedge from oil-led inflation, that's why low oil prices ease inflation concerns and reduce demand for bullion. This week trading is likely to remain thin. Gold is expected to be range-bound for the rest of the year.

Some analysts expect gold to trade lower and decline to $1,000 an ounce in 2016 amid prospects of further rate hikes by the Federal Reserve. Assets of SPDR Gold Trust, the biggest gold-backed exchange-traded fund in the world, fell by 0.18% to 643.56 tonnes on Monday.