Gold prices stabilize ahead of US inflation data

Gold prices fell on Monday, affected by the rise of the dollar, and with investors anticipating US inflation data on Tuesday, which may affect the Federal Reserve’s plans for the future of interest rates.

Spot gold fell 0.1% to $1,863.38 an ounce by 0653 GMT, while US gold futures rose 0.1% to $1,876.90.

Gold is considered a hedge against inflation, but the cost of holding it rises when interest rates are raised to curb inflation.

The dollar index rose 0.1 percent, making the greenback-denominated metal more expensive for holders of other currencies. Benchmark 10-year Treasury yields have hovered near their highest levels since Jan. 6.

Silver in the spot market fell 0.3 percent to $21.93 an ounce, platinum fell 0.1 percent to $943.76, while palladium rose 0.1 percent to $1,544.14.