• Gold futures on the COMEX division of the New York Mercantile Exchange went up on Monday as investors carefully monitored the election in the Netherlands for possible anti-Euro results.
The most active gold contract for April delivery rose 1.7 U.S. dollars, or 0.14 percent, to settle at 1,203.10 dollars per ounce.
• A parliamentary election in the Netherlands scheduled for Wednesday gave support to the precious metal as analysts note that a nationalist and anti-EU party could perform better than before, which would renew concerns over the stability of the Eurozone.
• However, the precious metal's gains were capped as traders focused primarily on the Federal Open Market Committee (FOMC) meeting scheduled to begin on Tuesday. Investors believe the Fed may raise rates from 0.75 to 1.00 during the FOMC meeting.
• "A rate rise from the Fed is pretty much priced in, we're probably going to see two more hikes this year," said Oxford Economics analyst Daniel Smith.
"A period of higher rates will tend to mean pressure on gold prices."
• "Now, the debate shifts to Fed dots," said Wayne Gordon, analyst for UBS Wealth Management, retaining a long view and target price for gold at $US1,300 per ounce.
"Some see the dots rising, and this week's quarterly Fed projections show a median of four. But we believe this year's dots will remain unchanged at three," he said, referring to the Fed policy-makers' forecasts that will be issued on Wednesday.
• Silver for May delivery rose 4.9 cents, or 0.29 percent, to close at 16.972 dollars per ounce.
Reference: Xinhua, Business News
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