Gold rises on lower stocks, dollar

Gold resumed its rise for a second straight session on Monday amid the retreat in equities and the U.S. dollar in thin trading ahead of the year-end holidays.

The precious metal hit a high of $1073.95 an ounce, while currently trading around 1072.22, compared to the session’s opening at $1065.80.

Gold rose on Friday, but could not escape a weekly loss after the Federal Reserve’s decision to raise interest rates by 25 basis points.

The Fed is predicted to raise its interest rates gradually in 2016, depending on the progress in economic data, especially inflation.

Several rate hikes by the Fed could damp the allure of non-interest gold, as it will provide support to the dollar.

The U.S. dollar retreated slightly against a basket of major currencies to 98.80, resuming its drop for a third straight session, according to the dollar index.

Asian shares, except in China, dropped on Monday, trailing losses in Wall Street on Friday, thereby giving some relief to bullion prices.

On the other hand, Brent crude extended its losses for a fourth consecutive session to hover around $36.35 a barrel, the lowest level in 11 years.