Gold futures settle higher as dollar weakens

Gold bars

Gold prices rose on Monday, supported by a weaker dollar, as investors awaited a crucial Federal Reserve meeting this week that could set the course of monetary policy through year-end.

December gold futures gained 0.88%, or $32.6, to settle at $3,719 per ounce.

The move coincided with a decline in the US currency, as the dollar index — which measures the greenback against six major peers — slipped 0.24% to 97 at 9:40 pm Makkah time.

Markets widely expect the Fed to cut interest rates by 25 basis points at its Sept. 16–17 meeting, marking the first such move since last December. Some investors, however, are still betting on a larger 50-basis-point cut.

Gold — a non-yielding asset — is viewed as a safe haven during times of uncertainty and typically benefits from lower interest rates.