Gold futures rallied above $920 an ounce on Monday in spite of subdued inflation concerns, as solid gains in the stock market sparked a technical rally in the metal, but gains were capped on MCX due to rise of rupee against the dollar.

Gold futures on MCX rose by 0.66 percent, compared with the rise of 1.10 percent on COMEX. Silver futures showed a decline of 2.24 percent on COMEX whereas it rose by 0.63 percent on MCX.

South African's Chamber of Mines raised its wage raise offer to mineworkers from 9 percent to 9.5 percent for the lowest earners on Monday but it may not be enough to avert a strike, a mineworkers union said. AngloGold Ashanti and Gold Fields last week made an improved offer of a 9 percent increase on the lowest earners and an 8 percent rise for the rest of the workforce, up from a previous offer of 7 percent for all staff.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said holdings stood at 1,109.81 tonnes as of July 13, unchanged from the previous business day.

The decline in the COMEX net speculative long position has accompanied an increase in the gold/silver ratio," said UBS in a report. "Further long liquidation on COMEX could see this ratio back up towards 80.

The dollar edged lower against a basket of currencies. It depreciated by 0.32 and 0.55 percent against euro and rupee respectively.

Gold is likely to trade up for the day as weaker dollar and upside in crude oil prices are likely to support precious metal. Despite waning retail and investment demand, silver too looks good for the day and from a week’s perspective. Buying at dips is recommended for the day.