Gold tilts higher as dollar holds

Gold prices rose on Monday, as the US dollar held against most of its peers.

The Fed will convene tomorrow to decide on monetary policy and provide clarity over the future of its decision in light of the recent economic data.

Uncertainty about the Fed’s next steps continues, especially after the release of mixed economic data, including slowing inflation and rising retail sales, while the central bank hinted to start reducing its bond-buying before the end of this year.

The US Treasury Secretary Janet Yellen warned that failure to raise the debt ceiling may lead to delays in critical payments in October.

The dollar index rose against a basket of major currencies by 0.1% to 93.2 points as of 18:03 GMT, after hitting a high of 93.4 points and a low of 93.1 points.

Gold spot prices rose 0.7% to $1,763.6 an ounce as of 18 :03 GMT.