Gold futures closed with a slight gain on Monday, after weakness in the U.S. dollar led more investors to the precious metal.

Gold for June delivery rose $1.70 to end at $928.70 an ounce on the Comex division on the New York Mercantile Exchange. The precious metal reached an intraday high of $934.50 an ounce.

On Friday, gold fell $4.80 to end at $927 an ounce, but the metal posted a gain of $13.80 on the week.

The dollar remained lower against most major counterparts on fears of the state of the U.S. economy.

The dollar index, which tracks the performance of the greenback against a basket of other major currencies, edged down 0.2 percent to 71.76.

Gold is stronger as the dollar has weakened, despite leaders of the G7 [Group of Seven] and IMF [International Monetary Fund] governing council saying they would do all in their powers to provide market stability, said Mark O'Byrne, executive director at Gold and Silver Investments Ltd., in a research note.

Continuing worries about the health of the international financial sector has led to declines in stock markets internationally and renewed risk aversion, he added.

Gold seems set to spend more time consolidating in its current range as cash generating liquidation caps the metal, while strong support is found back towards $900 an ounce, said James Moore, an analyst at, in a research note.

However, the long-term outlook remains positive, as inflationary and recessionary pressures draw safe-haven demand, while the metal's strong fundamentals provide background support, he noted.

Also on the Nymex, May silver gained 10 cents at $17.79 an ounce. Moving in the opposite direction, July platinum futures lost $46.60 to end at $1,981.50 an ounce.

June palladium futures lost $12.55 to finish at $462.80 an ounce. May copper dropped 4 cents at $3.90 a pound.