Gold jumped more than 1% due to geopolitical risks to boost safe-haven buying

Gold rose more than 1% last week, expanding gains as geopolitical risks propelled investors to buy safe-haven assets, after gold fell for three weeks.

The dollar slipped against a basket of currencies and also boosted gold.

At 1858 GMT, spot gold gained 1% to $ 1,281.46 an ounce. US December gold futures closed up $ 12.40, or 1%, at $ 1,281.60 an ounce.

"Saudi geopolitical issues are pushing gold higher over the weekend and today," said David Meager, director of metals trading at High Ridge Futures, who said investors are buying gold for hedging.

Crown princes in Saudi Arabia consolidated their power by fighting corruption, arresting more than one royal family member, government ministers and investors, including the well-known billionaire Alwaleed bin Tala.

The dollar slipped on Monday after recording its biggest weekly gain of the year last week, marking the lowest German bond yields in nearly two months as investors wait for clues to the ECB's asset purchase plan. The yield on the 10-year US Treasury note hit a two-week low.

On Friday, data from the U.S. Commodity Futures Trading Commission (CFTC) showed that for the week ended October 31, hedge funds and fund managers reduced COMEX gold long positions for the seventh straight week.