Gold rises 1.75% to $3,967 as silver jumps 3%

Gold futures rose 1.75% to $3,967.30 an ounce and silver gained 3.06% to $50.785, rebounding after a sharp sell-off last week that pushed gold to its lowest level in more than a year at $3,898.90.

The rebound was helped by a 0.20% fall in the dollar index to 101.671 and lower US Treasury yields alongside falling oil prices, which eased concerns about further monetary tightening by the Federal Reserve.

Despite the recovery, gold remains below the $4,000 level it lost last week, meaning investors have not yet recovered the full losses the metal suffered in the recent sell-off.

The market is awaiting new signals from the Fed on the path of interest rates, as well as moves in the dollar and bond yields, the two factors most influential in pricing gold and silver in the coming period.

What do these terms mean?

Futures contracts: An agreement to buy or sell a commodity at a specified price now, with delivery carried out on a later date.

Dollar index: An index that measures the value of the dollar against a basket of major currencies and usually rises when the dollar strengthens.

Bond yield: The return an investor earns from a bond when buying it and holding it to maturity, which moves inversely to the bond's price.