Gold prices rebounded on Friday to above $1,110 an ounce.US gold futures for February delivery on the Comex division of the New York Mercantile Exchange rose $4 to settle at $1,110.80 against $1,097.80 late in New York on Thursday.

Gold capped its gains in earlier trading as the U.S. dollar again rose to three-month highs as dollar and gold have a strong inverse relationship, with gold rising as the dollar falls.Dollar index rose to 77.84, up 0.2 percent.