Gold futures closed higher on Monday, as the U.S. dollar fell after Abu Dhabi pledged to bail out Dubai, which increased the investment appeal in bullion.
Abu Dhabi announced Monday a $10 billion rescue package for its sister-emirate Dubai and its debt-crippled sovereign enterprises.
The bailout is expected to go towards Dubai World – the emirate's flagship investment company- preventing them from a default on its bond payments, which threatened to send the region into financial crisis. The news help boost stocks worldwide.
Gold for February delivery rose $3.90, or 0.3 percent, ending at $1,123.30 an ounce on the New York Mercantile Exchange. The precious metal is at its lowest price since Nov. 13, and it was down 4.2 percent last week.
Also on the Nymex, March silver was up 25 cents, or 1.5 percent, to $17.34 an ounce, January platinum gained $24.30, or 1.7 percent, to $1,447 an ounce.
March palladium gained $6.15, or 1.7 percent, to $368.30 an ounce. December copper gained 2 cents, or 0.6 percent, to $3.13 a pound.