Gold prices rise while dollar weakens

The price of gold rose to almost $1,655 per troy ounce on Monday morning amid the weakening of the dollar, Report informs.

The price of December futures for gold on the New York Comex exchange rose by $5.95, or 0.36%, to $1,654.85 per troy ounce. December futures for silver rose 1.44% to $18.332 an ounce.

The dollar index (the exchange rate against a basket of currencies of six US trading partners) fell by 0.21% to 113.07 points. A cheaper dollar supports the demand for gold, which in this case, becomes more accessible to investors holding other currencies.

In general, the dollar continues to be supported at the current level by expectations that the US Federal Reserve System will continue to raise the rate, which traditionally strengthens the US currency and holds back gold.