Gold rises on the back of declining bond yields

Gold prices rose on Monday, supported by weak bond yields, as investors awaited US inflation data scheduled to be published later this week in search of more indications about the path the Federal Reserve will take on interest rates after an easing trend last week.

Gold rose in spot transactions 0.2 percent to $2,023.13 per ounce by 0458 GMT, while US gold futures settled at $2,036.70.

Ten-year US Treasury yields are hovering near their lowest levels since July. The decline in bond yields reduces the opportunity cost of holding non-yielding bullion.

The Federal Reserve kept interest rates unchanged last week and indicated that the historic tightening of monetary policy over the past two years may have come to an end and that interest rates will begin to decline in 2024.

Traders are awaiting a number of US economic data this week, including the headline Personal Consumption Expenditures (PCE) report for November on Friday.

Silver in spot transactions increased 0.3 percent to $23.90 per ounce, platinum also rose 0.3 percent to $942.72, while palladium fell 1.1 percent to $1,160.83.