Gold rose on retreating US dollar, T-yields before key data

Gold prices rose on Tuesday as a recent decline in the dollar and Treasury yields showed signs that the economy was overheating, ahead of crucial inflation and jobs data this week that could determine the future of interest rates.

And by 0645 GMT, spot gold rose 0.2 percent to $ 1923.27 an ounce, hovering near its highest level since August 10, which it reached on Monday. US gold futures rose 0.2 percent to $1,951.10.

The decline of the dollar against a basket of major currencies and the decline in US Treasury yields for ten years from their highest level since 2007, which they reached last week, led to a rise in gold prices.

A lower dollar makes gold, which does not yield, less expensive for holders of other currencies.

Among the slew of US economic data due this week, the focus will be on the Fed’s preferred inflation measure, the Consumer Price Index due out on Thursday, and the non-farm payrolls report due out on Friday.

As for other precious metals, spot silver rose 0.1 percent to $24.28 an ounce. Platinum rose 0.1% to $965.49. Palladium fell 0.6% to $1,247.15.