Gold prices advanced on Monday in Asia as the U.S. dollar slipped ahead of Wednesday’s minutes of the Federal Reserve’s December meeting and a speech by Fed Chairman Jerome Powell a day later, although an improved risk appetite limited gains for the safe-haven metal.

Gold Futures for February delivery gained 0.5% to $1,292.25 at 12:52 AM ET (05:52 GMT) on the Comex exchange.

Precious metals traders will get a fresh update on the outlook for monetary policy from Wednesday’s December Federal Reserve meeting minutes and a speech by Fed Chairman Jerome Powell a day later.

Last month, the Federal Open Market Committee voted to increase interest rates for the fourth time in 2018 and indicated that two more rate hikes this year are likely.

While investors will be closely scrutinizing the minutes, they will probably be dated following remarks by Fed Chairman Jerome Powell last Friday.

Powell pledged that the central bank would be watching how the economy performs this year and will adjust policy accordingly.

"Mr. Powell said he is open to a potential view change but so long as the data stays strong in the U.S. we will continue to project hikes in the interest rates in the U.S. by the central bank," said Bart Melek, head of commodity strategies at TD Securities.

Gold is highly sensitive to rising interest rates, which lift the opportunity cost of holding non-yielding bullion.

"Given the uncertain financial market climate, gold should continue to flourish, and for those that have missed the boat, pullbacks could be an excellent opportunity to engage," Stephen Innes, APAC trading head at OANDA in Singapore, said in a note.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies fell 0.2% to 95.523

"The dollar is weak, aiding gold. Also, Jerome Powell's views on Friday about the future of interest rate hikes is a bullish factor for gold," said Yuichi Ikemizu, Tokyo branch manager, ICBC Standard Bank.