Gold futures on the COMEX division of the New York Mercantile Exchange rose on Monday as short covering and the expiration of May options gave support to the precious metal.

The most active gold contract for June delivery rose 28.2 US dollars, or 2.40 percent, to settle at 1,203.20 dollars per ounce.

Short covering dominated the market on Monday as gold options for May delivery expired, supporting gold.

Investors are waiting for the US central bank, the Federal Reserve, to hint at the timing of an interest rate increase at their scheduled policy meeting on Wednesday. If the Fed decides to raise interest rates in June, it will put pressure on gold, as the precious metal bears no interest.

Gold was buoyed as the US dollar index, a measure of the dollar against a basket of major currencies, fell by 0.36 percent to 96.61 in midday trading. Gold and the dollar typically move in opposite directions, as a stronger greenback will make dollar- denominated gold more expensive for investors.

Silver for May delivery rose 75.8 cents, or 4.85 percent, to close at 16.394 dollars per ounce. Platinum for July delivery added 32 dollars, or 2.85 percent, to close at 1,153.40 dollars per ounce.