Gold prices stabilize as dollar trades near 2.5 week-high

Gold prices stabilized on Monday with the US dollar trading near its highest level in more than two weeks, amid anticipation of the monetary policy meeting of a number of central banks this week.

The Federal Reserve and the Bank of England will hold their monetary policy meeting this week, at a time when the global inflation rate is accelerating in light of the supply chain crisis and the global economy recovering from the repercussions of the pandemic.

Gold futures contracts for December delivery settled at $1,784.40 per ounce at 09:50am Makkah time. Spot price for the yellow metal settled at $1,782.90 per ounce.

Elsewhere, silver futures for December delivery fell 0.1% to reach $23.92 an ounce. Spot price for platinum delivery rose 0.8% to reach $1,030.19, while palladium gained 0.5% to hit $1,990 per ounce.

The main dollar index, which measures the performance of the US currency against a basket of six currencies, settled at 94.209 points, close to the highest level since Oct. 13 at 94.302 points.