NEW YORK (Scrap Register): Gold prices climbed as the US dollar slipped and markets anticipated the release of impending US inflation data that may offer some clues on the pace of future US interest rate increases.
The dollar dropped against a basket of major world currencies, reversing some of last week's gains, when it enjoyed its best performance since 2016.
A retreat in the dollar, in which bullion is priced, has helped gold pull back nearly 2 per cent from last week's one-month low of US$1,306.81 an ounce.
While bullion is sometimes seen as a safe haven asset against risk, it benefited little last week from the slide in equities as investors moving out of stocks broadly sought refuge in the dollar.
US bond yields and world equity markets dipped ahead of a widely anticipated US inflation report later this week that may provide some indication of the pace of future interest rate hikes by the Federal Reserve.
Inflation is sometimes regarded as gold-positive, because bullion is seen as a safe haven when price pressures are rising, but expectations that the US Federal Reserve will lift interest rates to fight inflation make the non-yielding metal less attractive.