Gold prices rose notably on Tuesday to reach three-week highs, extending gains for a third straight session.
Spot gold rose 0.7 percent to $1,937.96 per ounce, while U.S. gold futures were up 0.7 percent at $1,943.70.
The dollar hit a two-month low and Treasury yields slipped after several Fed officials said on Monday that higher interest rates are needed to reach the 2 percent inflation target, but the end to the current monetary policy tightening cycle is getting close.
Following last week's mixed monthly jobs report, traders now await U.S. consumer and producer price inflation data this week for additional clarity on the rate outlook.
The annual rate of growth by core consumer prices, which exclude food and energy prices, is expected to slow to 5.0 percent from 5.3 percent.
Ahead of the inflation data, CME Group's FedWatch Tool is indicating a 92.4 percent chance of another quarter point rate hike at the next Fed meeting later this month.
