Gold prices edged up on Monday as investors assessed China's weekend stimulus announcement, while also focussing on US Federal Reserve officials' comments for further rate cut cues.

Spot gold rose 0.2 percent to $2,660.64 per ounce by 0800 GMT. Bullion rose nearly 1 percent in the previous session.

US gold futures were steady at $2,677.90.

The potential commitment to fiscal stimulus from China suggests a healthier economy, which bodes well for gold demand but the market needs to see more concrete measures, said Tim Waterer, chief market analyst at KCM Trade.

China on Saturday said it would "significantly increase" debt to revive its sputtering economy, but left investors guessing on the overall size of the stimulus package.

Investors will watch out for comments from Fed officials this week for more hints on the upcoming rate cuts, along with US retail sales data.

"If the Fed speakers this week create some further doubt over how many rate cuts could occur between now and year-end, any resulting upside in the dollar could see gold support levels around $2,600 again being tested," Waterer said.

Data on Friday showed unchanged US producer prices last month, cementing the case for quarter-point US interest-rate cuts at upcoming Fed policy meetings.

Traders see a roughly 90 percent chance of the Fed cutting rates by 25 basis points at its November meeting, and 10 percent chance of it leaving rates unchanged.

The zero-yielding bullion is preferred in a low-interest rate environment.