Gold prices inched higher on Monday against the backdrop of a weakening dollar as fears about a full-point Fed rate hike receded.
Spot gold jumped 0.8 percent to $1,721.41 per ounce, while U.S. gold futures were up 0.9 percent at $1,719.60.
The dollar has opened the week on the backfoot despite strong U.S. economic data released on Friday.
Fears about inflation and the pace of rate hikes ebbed after the University of Michigan's survey showed inflation expectations easing to a one-year low.
The European Central Bank is scheduled to meet on Thursday, with economists expecting a 25-bps rate hike. The Bank of Japan is expected to keep its ultra-loose policy in place at its July 20-21 meeting.
This week's U.S. economic calendar is very light, with reports on housing starts and existing home sales likely to attract attention heading into next week's FOMC meeting.
Policymakers including Fed Governor Christopher Waller, as well as regional Fed Presidents Mary Daly, Loretta Mester, James Bullard, and Raphael Bostic, suggested that a 75 basis-point hike would be appropriate for this month.
