Gold edged higher as geopolitical uncertainty increased following an attempted mutiny by Russian mercenary group Wagner, while investors weighed recessionary signals.

Bullion rose as much as 0.4% on Monday after closing 1.9% lower last week on hawkish commentary from US and European central banks.

Despite the uncertainty surrounding the turmoil in Russia, the haven upside for gold was limited after Wagner leader Yevgeny Prigozhin suddenly halted his dramatic advance toward Moscow over the weekend. While the instability could reverberate further, the initial reaction for gold was fairly muted.

Bullion is more likely to be influenced by real rates and the dollar, and history suggests that rallies fueled by geopolitical risks tend to be short-lived. Prices are still trading under the 100-day moving average, a key technical level breached earlier this month as prospects for further monetary tightening by US and European central banks remained at the fore.

The situation in Russia follows a tough week for investors as anxiety rose over recession fears, particularly in Europe. The weak economic backdrop has boosted safe haven demand, ANZ Banking Group Ltd. analysts Brian Martin and Daniel Hynes wrote in a note.

Money managers have been turning positive on gold again, increasing net-long positions by about 2% in the week ending June 20 after bullish bets plunged nearly 20% in the previous session.

Spot gold rose 0.2% to $1,924.41 an ounce as of 11 a.m. in Singapore. The Bloomberg Dollar Spot Index declined 0.1% after climbing 0.8% last week. Silver, platinum and palladium gained.