(Reuters) – Gold prices stabilized on Monday as the prospect of the U.S. Federal Reserve raising interest rates next year dispelled support from a weaker dollar.
Gold in spot transactions was steady at $1791.56 an ounce by 0709 GMT. US gold futures rose 0.1 percent to $ 1802.50.
The dollar index fell 0.2 percent, making the yellow metal less expensive for overseas buyers.
Gold prices are trying to recoup losses despite the Federal Reserve’s monetary tightening approach.
Gold recorded its biggest weekly decline since mid-November on Friday after Fed Chairman Jerome Powell said the U.S. central bank will continue to raise interest rates next year despite growing recession fears.
In other precious metals, silver fell 0.4 percent to $23.12 an ounce.
Platinum fell 0.2 percent to $ 989.52, and palladium rose 0.7 percent to $ 1725.38.
