09:35 AM EST, 12/09/2024 (MT Newswires) -- Gold moved higher early on Monday as the dollar weakened ahead of next week's expected cut to U.S. interest rates, while the sudden collapse of the Assad regime in Syria added geopolitical risk.

Gold for February delivery was last seen up US$27.60 to US$2,687.20 per ounce, the highest since Nov.22.

The rise comes as the rapid collapse of Syria's government supports safe-haven buying. Syrian President Bashar al-Assad fled to Moscow over the weekend as rebel forces took Damascus, the country's capital, just days after they overwhelmed Aleppo, Syria's largest city.

Support for the metal is also coming from falling interest rates, with the Federal Reserve's policy committee expected to cut rates by 25 basis points at the end of its two-day meeting next week. At the same time, China promised to loosen economic policy while central banks in Canada and other countries are also expected to continue to lowering rates.

"Gold trades firmer at the start of a week with focus on geopolitics and central banks. Several central banks, led by the Federal Reserve, are expected to cut rates, while developments in Syria will be watched closely," Saxo Bank noted.

The dollar weakened early, with the ICE dollar index last seen down 0.11 points to 105.95.

Treasury yields edged up, with the U.S. two-year note last seen paying 4.12%, up 0.8 basis points, while the yield on the 10-year note was up 0.5 points to 4.175%.