Gold rose to the highest in nearly seven months early on Monday as the US dollar continues to weaken.

Gold for February delivery closed up US$9.50 to US$2,033.00 per ounce, the highest since May 9.

The rise comes as the US dollar continues to weaken on expectations the Federal Reserve is through with raising interest rates as a series of reports show the economy is slowing and inflation is dropping. The US Bureau of Economic Analysis will report personal consumption expenditures price index for October on Thursday, the Fed's preferred inflation measure, with analysts expecting the report to show the core rate dropping to 3.5% annualized from 3.7%, according to Marketwatch.

The ICE dollar index was last seen down 0.07 points to 103.33, down from the month high of 106.88 set on Nov.1.

Treasury yields also eased, with the two-year note last seen paying 4.895%, down 6.5 basis points, while the yield on the 10-year note was down 6.1 basis points to 4.41%.

Source : MT Newswires