Investing.com - Gold prices rose to re-approach a five-week high on Monday, as a broadly weaker U.S. dollar boosted the appeal of the precious metal.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at $1,246.10 a troy ounce during U.S. morning hours, up $7.10, or 0.57%.
Prices rallied to a five-week high of $1,250.30 on October 15.
Futures were likely to find support at $1,222.00, the low from October 15, and resistance at $1,250.30, the high from October 15.
Also on the Comex, silver futures for December delivery picked up 12.2 cents, or 0.7%, to trade at $17.45 a troy ounce.
The US Dollar Index, which tracks the performance of the greenback against a basket of six major currencies, dipped 0.12% to hit 85.21.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Gold prices remained supported amid speculation weaker than expected global economic growth and its effect on the U.S. economy may lead the Federal Reserve to push back interest-rate increases.
A delay in raising interest rates would be seen as bullish for gold, as it decreases the relative cost of holding on to the metal, which doesn't offer investors any similar guaranteed payout.
Elsewhere in metals trading, copper for December delivery lost 2.2 cents, or 0.73%, to trade at $2.982 a pound.
Market participants looked ahead to a raft of Chinese economic data due on Tuesday for further indications on the strength of the economy and the future path of monetary policy.
The Asian nation will release data on third quarter gross domestic product, as well as reports on industrial production, retail sales and fixed-asset investment for September.
Market analysts expect China's economy to grow 7.2% in the three months ending September 30, down from growth of 7.5% in the preceding quarter.
Recent economic data from the Asian nation has indicated that the recovery remains fragile and may require further monetary stimulus.
China's central bank signaled plans on Friday to inject as much as 200 billion yuan in short-term loans to the nation's banks in order to spur lending activity and boost growth.
Copper traders also looked ahead to the outcome of a four-day meeting of China's top Communist Party officials on Thursday, known as the 4th Plenum, amid expectations that policymakers will unveil economic reforms.
China is the world's largest copper consumer, accounting for almost 40% of world consumption.
Investing.com offers an extensive set of professional tools for the financial markets.
Read more News on Investing.com and download the new Investing.com apps for Android and iOS!
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.