Gold closed higher on Monday despite a strengthening dollar on speculation a slowing economy may force the Federal Reserve to cut interest rates further.

Gold fell in early sessions as the dollar rebounded and crude declined. But the metal recovered as the session went on. Most-active December gold on the COMEX division of the New York Mercantile Exchange settled up $4.10 at $754.10.

Spot gold rallied to $747.65 an ounce, its highest level since January 1980, before easing to $746.80/747.60 by 2:15 p.m. EDT (1815 GMT), against $742.40/743.20 late in New York on Friday.

The metal has hit new highs four times in less than two weeks.

In other bullion markets, August 2008 futures in Tokyo ended 28 yen per gram higher at 2,786 yen.