2018.11.1214:08:00UTC+00Gold Settles Lower Again As Dollar Rises To Near 17-month High

Gold prices edged lower on Monday, extending recent losses, as the dollar climbed to a near 17-month high amid expectations that the Federal Reserve will raise interest rate next month.

While leaving the interest rate unchanged after its policy meeting last week, the Fed had indicated that its is likely to raise interest rate in December and might resort to three more increases in the coming year to reach the "neutral rate" of between 2.5% and 3.5%.

Recent data from U.S. Labor Department that showed producer prices to have risen more than expected in October has also raised the prospects of a tighter monetary policy. The data showed the producer price index was up by a seasonally adjusted 0.6% in October, compared to a month earlier. That was above the expected increase of 0.3%.

The dollar strengthened against most major currencies and the dollar index rose to its highest level since June 2017, climbing to 97.41.

Gold futures for December ended down $5.10, or 0.4%, at $1,203.50 an ounce, the lowest settlement in nearly five weeks.

On Friday, gold futures declined by $16.50, or about 1.4%, to settle at $1,208.60 an ounce.

Silver futures for December ended lower by $0.129, at $14.011 an ounce, while Copper futures for December settled at $2,6765 per pound, losing $0.0080 in the session.