Gold prices inched lower on Monday, the dollar advanced and U.S Treasury yields inched up as investors braced for key U.S. data due this week that could influence the Federal Reserve's rate-hike trajectory.
Spot gold dropped half a percent to $1,857.20 per ounce, while U.S. gold futures were down 0.3 percent at $1,868.25.
The dollar held near five-week highs and the benchmark U.S. 10-year treasury yield rose to a six-week high, as investors looked ahead to the release of U.S. inflation, retail sales and industrial production data due this week for additional clues on the rate outlook.
A stronger-than-expected inflation reading could force the Fed to get more hawkish.
Philadelphia Fed President Patrick Harker said on Friday that the key interest rate must get above 5 percent and stay there to ensure price pressures ease.
Richmond Fed President Thomas Barkin said it's important for the U.S. central bank to continue to raise rates to bring inflation back to the 2 percent target.
