Gold prices decline as US dollar strengthens

Gold prices fell on Monday, with the US dollar index rising above 90 points, amid follow-up comments related to the interest rate in the United States.

The US jobs report for May, which came in below estimates, lowered analysts' expectations regarding the Federal Reserve's direction to tighten monetary policy soon.

Meanwhile, US Treasury Secretary Janet Yellen said that if the Fed raised interest rates, it will be an added advantage from the society's and the Fed's point of view.

"President Joe Biden's $4 trillion spending proposal will be positive for the country, even if it causes interest rates to rise," she added.

Spot gold fell by 0.4% to $1,883.75 per ounce, and gold futures contracts for August fell by 0.3% to $1885.90 per ounce by 09:35am Makkah time.

Elsewhere, silver dropped 0.8% to $27.65 per ounce, palladium settled at $2,841.50 and platinum dropped 0.3% to $1,166.25.

The US dollar index - which measures the performance of the US currency against a basket of six currencies - rose by 0.1% at 90.214 points.