Gold prices regained its footing on Monday posting a 1 percent uptick upon announcement that France and Germany are fast tracking updated fiscal strategies to alleviate the debilitating debt crisis affecting the eurozone.

Spot gold is predicted to float between $1,596 and $1,677 during the day.

The new fiscal policies are expected to be revealed by end of the month. This early, it has sent prices of commodities and equities to surge, particularly gold, after it went on a downhill in last Friday's trading session caused by the downgrade of credit ratings by Fitch on Spain and Italy

Spot gold grew nearly 1 percent to $1,653.64 an ounce, before lowering some gains to $1,651.25.

The precious metal, considered a safe haven in times of financial crisis, grew 0.9 percent last week, reversing four weeks of consecutive losses , with its longest failing streak recorded since January.

U.S. gold soared by as much as 1.2 percent to $1,654.9, and eased to $1,653.30.

China has reopened after the week-long National Day holiday. Gold contract on the Shanghai Gold Exchange grew more than 1 percent to 341.80 yuan per gram, or $1,666.14 an ounce.

Meanwhile spot silver rose 2.5 percent to $31.93, before easing to $31.53. U.S. silver shot 3.2 percent to $31.98 and trimmed some gains to $31.60.

Last Friday, gold fell 0.9 percent to $US1,633.69 an ounce. During the session, it traded as high as $US1,665.99. Gold was up around 0.7 per cent the entire week, its first gain in five weeks.