Gold prices edged lower on Monday but were on track for a monthly gain amid optimism that major central banks are approaching the end of tightening cycles.
Spot gold slipped 0.1 percent to $1,956.74 per ounce, while U.S. gold futures were down 0.3 percent at $1,994.95.
A stronger dollar weighed on bullion prices today as investors seek direction from key economic data this week, including global PMI data and the U.S. jobs report for July.
Data showed on Friday that the Fed's favorite inflation gauge slowed to a two-year low in June, easing concerns about the outlook for interest rates.
Eurostat reported earlier today that Eurozone returned to growth in the second quarter amid falling inflation.
According to Eurostat, Eurozone inflation fell in line with expectations to 5.3 percent year-on-year in July, compared with 5.5 percent in June.
The inflation outlook is "quite positive", and the base case scenario seems to be that we would avoid a recession, Federal Reserve Bank of Minneapolis President Neel Kashkari said on CBS's Face the Nation - raising hopes of a soft landing for the world's largest economy.
