Gold futures settled higher on Monday, recouping some of their recent loss as investors awaited what’s widely expected to be the Federal Reserve’s third interest-rate hike of 2018 this week — a well-telegraphed move to markets.
December gold GCZ8, +0.17% rose $3.10, or 0.3%, to settle at $1,204.40 an ounce. It settled Friday at $1,201.30, its lowest level in a week even as it ended little changed in price for all of last week.
Gold found support as the dollar index DXY, +0.04% tilted slightly lower on Monday. The dollar and gold, which is chiefly priced in the U.S. currency, tend to move inversely. Gold prices based on the most-active contracts have declined by 8% so far in 2018 as the dollar index is up about 2.2% for the year to date, a divergent move driven in large part by the Fed tightening U.S. monetary policy more aggressively than the rest of the developed world.