Gold prices fell Monday, undermined by the dollar's advance on hopes for an economic stimulus package in the U.S. Meanwhile, energy and agriculture futures rose. The dollar rose against the euro and the Japanese yen, buoyed by President-elect Barack Obama's calls for steps to be taken early in the year to boost the economy. The president-elect met with members of Congress Monday and endorsed tax cuts now expected to reach $300 billion. The dollar's direction was a major factor in commodities prices for much of 2008; its weakness contributed to the rally in futures the first half of the year and its strength, along with the deepening recession, help send prices plunging in the second half. Analysts expect both to continue to play a major role in how commodities fare this year. Gold can be especially sensitive to the direction of the dollar because it is often used as a hedge against inflation and a weak greenback. Inflation is a concern to some economists now that the Federal Reserve has sent U.S. interest rates about as low as they can go. That theoretically could boost gold prices, but with the economy so weak, inflation may well be contained for some time. Additionally, many other countries are expected to cut their interest rates, which could undermine their currencies and potentially give the dollar a boost. Matt Zeman, head trader at LaSalle Futures in Chicago, attributed gold's decline Monday to a stronger dollar, but isn't so sure that trend will continue. "I think the dollar is going to remain under pressure," he said. "I wouldn't look for gold to fall too far either." Gold for February delivery lost $21.70 to settle at $857.80 an ounce on the New York Mercantile Exchange. Other precious metals prices also fell. March silver fell 22 cents to $11.27 an ounce, while March copper futures shed 0.2 cent to $1.4590 a pound.

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