The stage has been set for the rally in domestic gold futures to continue Monday after their international counterparts hit a two-month high late Friday.

The December Comex gold contract spiked just before 10 pm Beijing Time Friday to settle about 1.9 percent higher at $1,395.80. The contract was up 1.8 percent for the week.

Earlier in the day, the most traded gold contract on the Shanghai Futures Exchange (SHFE) rose 0.88 percent to close at 274.75 yuan ($44.88) per gram, or $1,395.82 per ounce, leaving room to rise when the Chinese mainland markets open Monday.

Gold got a boost late Friday after news broke that new home sales in the US unexpectedly fell in July, Reuters reported. The news spurred hope that the US Federal Reserve would postpone tapering its monetary stimulus programs, bolstering precious metals prices, which have benefited from the Fed's easy money policy.

Gold prices have rebounded since bottoming out to around $1,200 per ounce in the first week of July.

From August 12 to August 16, the ANX China Commodity Index experienced its largest gain since the first week of July, led by a 5.2 percent increase in precious metals. The index, published by the Australian bank ANZ, tracks a basket of commodities related to the Chinese economy.

"The bounce in gold prices appears to be more sustainable - coinciding with a reversal of ETF outflows," ANZ commodity analysts said in a research note Wednesday.