GOLD futures have ended higher as the US dollar eased against the euro and investors took a more optimistic outlook on the upcoming Federal Reserve policy-setting meeting. Platinum prices, meanwhile, rose to a two-week high amid concerns that supply of the metal would be reduced if South African authorities approve Anglo American Platinum Ltd's plans to close some of its mines. The most actively traded contract, for June delivery, on Monday rose $US13.80, or one per cent, to settle at $US1,467.40 a troy ounce on the Comex division of the New York Mercantile Exchange. This was the highest settlement price in two weeks as gold continued its recovery from a record two-day downdraft earlier in April, which erased more than $US200 from the price of an ounce. Gold drew strength from a weaker US dollar, which retreated against the euro as investors welcomed political progress in Italy. Prime Minister Enrico Letta and his new cabinet were sworn in Sunday, forming a new government after months of stalemate. As other currencies advanced against the US dollar, dollar-denominated gold becomes less expensive for buyers who use those currencies. Gold traders also were more optimistic ahead of the Federal Open Market Committee's two-day meeting, which starts Tuesday. Some traders said that weaker-than-expected US economic growth could prompt the Fed to maintain its accommodative stance on monetary policy for longer than previously thought. Gold prices had benefited from past easy money efforts, as investors flocked to hard assets like precious metals to guard their wealth against the eroding value of the US dollar and concerns about higher inflation. Fears that the central bank would cut short some of these programs had contributed to gold's two-day rout. Gold's gains come as physical demand for the metal continues to be robust among investors in Asia. Sales of gold bullion and jewellery remain elevated in India and China, the world's two largest consumers of the metal. However, institutional investors in physical gold, many of whom buy bullion through gold-backed exchange-traded funds, have been streaming out of the market in recent months. "The conundrum now for gold appears to be the balance between the very strong physical demand reported globally since the big sell-off and the waning investor interest demonstrated in the declining ETF holdings," traders at TD Securities said in a note to clients. Platinum for July delivery settled at its highest level since April 11, up $US30.90, or 2.1 per cent, at $US1,507.40 a troy ounce. The world's largest producer of platinum, Anglo American Platinum, is due to conclude consultation with South Africa's government which paves the way for the company to shut down some of its mines. The proposed closures would reduce global supply of the metal by about seven per cent, pushing supply below forecast demand for the year. Platinum is primarily used in car exhaust filters for diesel-burning vehicles. Palladium prices also rose to a two-week high, as the metal is often found alongside platinum and South Africa is the world's second largest producer of palladium behind Russia. Palladium for June delivery rose $US17.25, or 2.5 per cent, to settle at $US699.20 a troy ounce on the Nymex. London PM Gold Fix: $1,467.50; previous PM $1,471.50 Jun gold $1,467.40, up $13.80; Range $1,461.60-$1,478.30 Jul silver $24.166, up 37.8 cents; Range $23.945-$24.475 Jul platinum $1,507.40, up $30.90; Range $1,480.40-$1,525.80 Jun palladium $699.20, up $17.25; Range $678.20-$702.80