Gold rose 1.4 percent Monday in early U.S. trading as investors inclined toward the view that the decision of the top U.S. central banker to extend by a day a key September meeting might indicate an intent to intervene in the bond market, an action that is bullish for gold.

The Federal Reserve's Open Market Committe will discuss a wide range options next month in what had been scheduled to be a one-day meeting. However, Ben Bernanke is doubling the length of that gathering, perhaps to gain time to convince members to go along with another round of money printing, according to traders.

An extra day of deliberations scheduled for the September FOMC meeting kept hope of another QE3 on the table, said ANZ Bank in a note on Monday.

In addition, a call by the new head of the International Monetary Fund for coordinated action by the world's central banks to head off a global recession implies an emerging, transnational intervention by the world's key central banks.

Prospects for such action was reflected in the price of government debt instruments.

Bund futures fell on signs that the U.S. Federal Reserve would consider a fresh batch of economic stimulus at September's Fed policy meeting

The price of gold for December delivery, the most actively traded contract on the New York Mercantile Exchange, rose $26.50 from $1,797.30 to $1,831.80 per ounce.

Silver also rose, though less sharply, climbing 29 cents per ounce from $40.95 to $41.24.