Gold prices rose on Monday supported by a weaker dollar, PRIME Business News Agency reported on Monday.
According to the report, the price of December gold futures on the Comex, the world's largest futures and options trading for metals, rose by 0.4%, or $8, to $1955.85 per ounce (around 28 grams). December silver futures gained 0.76% to $27.062 an ounce.
A weaker dollar is supporting the value of gold as it becomes cheaper for foreign exchange holders. The dollar index (the dollar's exchange rate against a basket of currencies of six countries - the main trading partners of the United States - namely China, Mexico, Canada, Japan, Germany and South Korea) decreased by 0.16%, to 93.18 points.
"The gold market is leaning towards the Fed's (policy)," Stephen Innes, Chief Market Strategist at AxiCorp told Reuters, adding that the lower interest rate environment and long-term expectations that the Fed is going to increase quantitative easing and weaken the dollar are supporting gold prices.
A two-day meeting of the Federal Reserve System will take place on September 15-16.