Gold inches higher as dollar cuts gains

Gold prices rose on Monday, and erased early losses, as the US dollar pared some of its gains against most currencies.

Bear in mind that the Fed's interest rate hike means increased borrowing costs for companies, which push their shares down.

St. Louis Federal Reserve President James Bullard said that Fed could raise interest rates as soon as March, which is sooner than expected.

Efforts to contain the coronavirus continue in many countries around the world, as governments avoid re-imposing lockdown restrictions to not harm their economies.

The dollar index rose against a basket of major currencies by 0.2% to 95.9 points as of 14:56 GMT, after hitting a high of 96.2 points and a low of 95.7 points.

Gold spot prices rose 0.1% to $1,808 an ounce, as of 20:57 GMT.