Gold floats low as dollar holds firm, focus shifts to US inflation data

Gold prices have hovered near a three-week low as the dollar held firm and investors awaited US inflation data for more cues on whether the Federal Reserve will stand pat on interest rates or raise them higher.

Spot gold was down on Monday 0.1 percent at $1,934.53 per ounce, as of 0447 GMT. US gold futures gained 0.1 percent to $1,939.00.

Gold fell 2.8 percent last week, logging its worst week in more than a month, as Fed Chair Jerome Powell's hawkish remarks pushed back any notion about interest rate cuts.

"People are kind of focused on whether the CPI data (will) allow the Fed to pause or hike. So I think the markets (are) a little bit sideways ahead of that data," said Nicholas Frappell, global head of institutional markets at ABC Refinery.

Consumer prices index prospects

U.S. consumer prices index (CPI) data is due on Tuesday. Core CPI month-over-month is expected to have risen 0.3 percent in October, with a year-over-year increase of 4.1 percent, a Reuters poll showed.

Both estimated gains are the same as in September. The dollar was up 0.1 percent against its rivals after hitting a one-week high in the previous session, making bullion less attractive for other currency holders.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.10 percent to 868.14 tonnes on Friday.

"Other than geopolitical risks-driven haven demand and central bank purchases, the macroeconomic backdrop is turning supportive for gold," ANZ analysts said in a note.

"The US monetary tightening cycle is nearing an end and the USD has peaked. This could see US 10-year yield and the USD moderating, which will support investment demand of gold."

Elsewhere, spot silver fell 1 percent to $21.98 per ounce, while platinum gained 0.7 percent to $845.52. Palladium firmed 0.2 percent to $964.89 per ounce but was holding near its lowest level since 2018.