Gold prices settled on Monday at the highest level of $ 1,300 per ounce, the highest level in seven months, supporting the decline of USD against a basket of global currencies, ahead of the Federal Reserve meeting on Tuesday to discuss monetary policy appropriate to developments in the US economy.

Gold prices are trading around 10:58 GMT around $ 1,301.55 per ounce from the opening level of $ 1,302.75 and the highest of $ 1,304.41 since June 14, 2018 and the low of $ 1,299.51.

Gold prices rose 1.7% on Friday, the first gain in three days, with the biggest daily gain since October 11, as the metal bought a safe haven and supported the weakness of the US dollar, breaking through $ 1,300 an ounce.

Prices of gold also gained 1.7% over the week, resuming strong weekly gains that were temporarily halted last week for the first time in five weeks.

The dollar index fell 0.1% on Monday, continuing its losses for the second day in a row, reaching a two-week low of 95.33 points, reflecting the continued decline of USD against a basket of global currencies, which currently supports the rise in prices of gold and other metals denominated in USD.

USD falling comes a day before the start of the Federal Reserve’s first meeting in 2019 to discuss monetary policy appropriate to developments in the US economy, to be issued decisions after Wednesday, amid expectations to keep US interest rates unchanged without any change within the range of 2.50%.

Investors are focusing on the monetary policy statement in search of evidence of the pace of US interest rate hikes this year, and markets are now widely expected to have difficulty raising interest rates this year amid rising risks around the world’s largest economy.