The price of gold was moving higher Monday morning, with the US dollar trading weak versus a basket of currencies as traders expect the Federal Reserve, in its meeting later this week, to reaffirm its commitment to keep U.S. interest rates at record low till mid-2014.
Gold for August delivery, the most actively traded contract, gained $14.60 to $1.336.10 an ounce. Last week, gold rose over 2 percent as the dollar weakened against a basket of major currencies after some mixed reading on U.S. economic growth that fueled expectations the U.S. Federal Reserve will continue to maintain its monetary stimulus policy.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 927.35 tons.
Meanwhile, the U.S. dollar was extending its one-month low versus the euro. Sterling and the Swiss franc. The buck continued to move lower against the yen.
In economic news, U.K. mortgage approvals declined in June despite measures taken by the government and central bank to ease credit conditions, data from the Bank of England showed. The number of loans approved for house purchases fell unexpectedly to 57,667 in June from 58,071 in May. It was forecast to rise to 59,500 in June.
Elsewhere, the prices of silver and platinum were trading higher in morning deals.
From the U.S., the National Association of Realtors will release its pending home sales index for June at 10 a.m ET. Economists expect a 1.4 percent drop in the index in June following a 6.7 percent surge in May.
