Gold Up Over Weakening U.S. Dollar

Asia's gold prices rose on Monday morning as the U.S. dollar sagged ahead of a vacation.

Gold futures rose 0.34 percent to $1,846.80 around 12:30 AM ET, an increase of 0.34 percent (4:30 AM GMT).

On Monday, U.S. markets are closed for a holiday.

"Because today is a U.S. public holiday, liquidity – and consequently volatility – are expected to be lower, making directional moves on gold difficult in the absence of a new impetus," said City Index senior market analyst Matt Simpson to Reuters.

Since May 19, gold has essentially fluctuated between $1,805 and $1,880. This makes it more of a market for traders than for investors. We believe that investors will choose to purchase dips above $1,800 and sell rallies below $1,880," Simpson added.

Concerns that tightening monetary policy could hinder economic development weighed on Asian markets.

Gold finished the previous week lower as a result of a stronger dollar in response to interest rate increases by major central banks. Wednesday, the U.S. Federal Reserve announced a 75 basis point increase in interest rates, the largest increase since 1994. The Swiss National Bank unexpectedly increased interest rates by 50 basis points on Thursday, the same day that the Bank of England lifted its rates to 1.25 percent.

In comparison to other precious metals, silver increased 0.64 percent. Platinum increased by 0.14 percent, while palladium increased by 2.25 percent.