Gold futures on the COMEX division of the New York Mercantile Exchange closed higher on Monday as the U.S. dollar weakened.

The most active gold contract for April delivery rose 10.70 dollars, or 0.81 percent, to close at 1326.40 dollars per ounce.

The U.S. dollar index, a gauge of the greenback against a basket of other major currencies, fell 0.18 percent to 90.21 as of 1810 GMT.

Gold and the dollar typically move in opposite directions, which means if the dollar goes down, gold futures will rise.

U.S. stocks were in a recovery mood on Monday, following sharp plunges last week. The Dow Jones Industrial Average rose 393.19 points, or 1.63 percent as of 1820 GMT, thus limited the rise of gold, a safe haven for investors.

The market will be watching January's consumer prices to be released by U.S. Labor Department on Wednesday, to see the trend of inflation, a key factor the Federal Reserve will take into consideration when they decide on possible interest rate hikes in March.

The Labor Department announced earlier this month that 200,000 new jobs were created in January, reflecting a continuous economic expansion.

As for other precious metals, silver for March delivery rose 43.1 cents, or 2.67 percent, to settle at 16.57 dollars per ounce. Platinum for April went up 11.30 dollars, or 1.18 percent, to close at 972.80 dollars per ounce.