Gold closed higher on Monday as a weaker dollar and caution from the Federal Reserve on the timing of a possible hike in U.S. interest rates generated modest investor interest.
U.S. gold futures for April delivery settled up $3.10, at $1,187.70 an ounce. Spot gold was up 0.5 percent at $1,188 an ounce, its highest since March 6. European shares fell, also on caution about whether Greece can reach agreement with creditors to secure fresh funds ahead of a meeting between its prime minister and Germany’s Angela Merkel.
Gold is usually seen as an insurance against risk in times of financial or economic troubles when equities underperform. The dollar was down 0.8 percent against a basket of leading currencies. It came under pressure after the Fed’s cautious stance on the health of economic recovery in the United States.