Gold climbed to $1,073.20 (+0.46%) on a softer dollar and gains in crude oil prices after the Energy Information Administration unexpectedly reported a decline in U.S. crude oil inventories. Gold is often seen as a hedge asset against oil-driven inflation. Low trading volume ahead of holidays makes bullion sensitive to market movements.

Nevertheless fundamentals remain bearish. The Federal Reserve is expected to continue raising its interest rates gradually and this would support the dollar. Some analysts say that prices may fall below $1,000 key level in 2016.