Gold prices hit a near two-week peak on Monday, as a weaker dollar offset bets that the U.S. Federal Reserve could begin tapering its pandemic-era asset purchases soon. Spot gold rose 0.2% to $1,764.60 per ounce, after hitting $1,765.54, its highest since Sept. 23. U.S. gold futures gained 0.4% to $1,764.90. The dollar index, dropped to its lowest since Sept. 29, making gold cheaper for buyers holding other currencies. The U.S. Federal Reserve may be close to meeting the inflation mandate set for raising interest rates, Philadelphia Fed Bank President Patrick Harker said, but it may be a year or longer before the central bank’s employment goal is met to allow for an actual rate increase.Gold is traditionally seen as an inflation hedge, although reduced central bank stimulus and interest rate hikes tend to push government bond yields up, in turn translating into a higher opportunity cost for gold that pays no interest.