Gold rises ahead of US inflation data

Gold prices rose on Monday, supported by a decline in the dollar, as investors awaited inflation data in the United States, which may make the Federal Reserve inclined to raise interest rates later in the year.

Gold jumped in spot transactions 0.5 percent to $1,927.39 per ounce by 0614 GMT, while US gold futures rose 0.4 percent to $1,950.80.

US CPI data for August, scheduled to be published on Wednesday, is expected to chart the course for the Federal Reserve’s interest rate decisions this year.

The dollar fell 0.5 percent and 10-year Treasury bond yields fell 0.3 percent, making non-yielding bullion more attractive to buyers abroad.

As for other precious metals, silver in spot transactions jumped 0.7 percent to $23.07 per ounce. Platinum increased 0.7 percent to $898.55 after falling seven percent last week, and palladium rose 0.7 percent to $1,206.21.