FX.co ★ Gold Futures Settle Higher

Gold futures recovered after early weakness and settled higher on Monday as the dollar turned weak despite expectations the Federal Reserve will continue with its monetary tightening to fight inflation.

The dollar index dropped to 101.98 around mid morning, and was at 102.17 a little while ago, trailing its previous close by about 0.33%.

Gold futures for June ended higher by $14.20 at $2,000.40 an ounce.

Silver futures for May ended down $0.135 at $24.021 an ounce, while Copper futures for May settled at $4.0455 per pound, down $0.0490 from the previous close.

Gold prices surged on safe-have buying after OPEC+ announced a surprise output cut, raising concerns about inflation.

Saudi officials claimed the unexpected cut was a "precautionary measure aimed at supporting the stability of the oil market."

The move by oil producers brewed some concerns over a potential resurgence in inflation and more policy tightening by major central banks, particularly the Fed.