Gold prices were higher on Monday, but held around the $1,200 threshold as the sustained strength of the dollar continued to weigh on the precious metal.

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery were up 0.34% to $1,200.10.]

The February contract ended Friday's session 0.10% higher at $1,196.00 an ounce.

The dollar remained supported after the Federal Reserve signaled last week that it was on track to raise interest rates next year but said it was taking a patient stance.

The central bank also acknowledged the improvement in the U.S. labor market and noted that the economy is making progress toward its goals in inflation and employment.

Higher U.S. interest rates would boost the greenback and weigh on gold, which has benefited from central bank liquidity and a low interest rate environment since the 2008 financial crisis.

Trading volumes were expected to remain light this week with many investors away for the Christmas holiday and ahead of the New Year's holiday.

Elsewhere in metals trading, silver for March delivery gained 0.84% to $16.165 a troy ounce, while copper futures for March delivery advanced 0.48% to $2.898 a pound.