Gold rallied to a fresh high of $1167 an ounce on Monday morning as risk appetite was given a fresh boost amid speculation an economic recovery in Asia was gathering pace.

Analysts said this week could, however, prove quite choppy due to the large open interest ahead of Comex option expiration today and US players being out on Thursday for Thanksgiving.

"Traders will continue to keep a close eye on the dollar and risk appetite as a whole, but there is nothing to rule out a push towards $1200 if further investment and buy-stops are triggered," according to James Moore, analyst from the theBullionDesk.com.

He explained that the upbeat tone has also bolstered most Asian equities, halting a three-day down streak with the MSCI Index, currently up 0.9 percent, although the Nikkei is currently trading down 0.5 percent.

"Despite the Dollar Index closing up 0.35 percent Friday, the greenback has started the week on a back footing following a bearish report on Bloomberg surveying top FX analysts and comments from Federal Bank official James Bullard saying he would prefer to extend the Fed's asset-buying programme beyond the current date," says Moore.

The gold price was last trading at $1166.92 an ounce from a previous close of $1155.25, leaving the gain for the day at just over $10.

The euro was last at $1.4985, stronger than the $1.4849 seen at the previous close.