Gold futures on the COMEX Division of the New York Mercantile Exchange rebounded on Monday, as buying from bargain hunters after recent drops warmed up the sentiment.

The most active gold contract for April delivery gained 11.5 dollars, or 0.7 percent, to settle at 1,667.3 U.S. dollars per ounce.

Market analysts said that the metal's sharp decline last week offered a buying opportunity for investors sill seeing gold as bullish investment in the long term.

Gold lost 3.3 percent for the whole of the previous week as mostly upbeat U.S. macroeconomic data cut down on the metal's safe- haven appeal and U.S. Fed failed to meet the expectation of additional quantitative easing.

A trader noted that gold is unlikely to make much progress from here with market participants cautious after volatility in the past week and the metal would be under more consolidation at the start of this week.

Silver for May delivery increased 35.1 U.S. cents, or one percent, to close at 32.955 dollars per ounce.