Investing.com - Gold prices were little changed on Monday as the dollar traded near 16-month highs and traders awaited U.S. inflation data due later this week.
Meanwhile, Federal Reserve Chairman Jerome Powell’s speech on Wednesday would also be closely watched as he discusses national and global economic issues.
The Fed indicated earlier this month that it is still on course to hike interest rates in December.
Interest rate increases and higher U.S. bond yields are usually bearish for gold, which offers no yield. They also tend to boost the dollar, in which gold is priced.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange inched up 0.05% at?EUR?$1,209.2?EUR?a troy ounce by 1:12 AM ET (06:12 GMT).
The U.S. dollar index that tracks the greenback against a basket of other currencies was near 16-month highs, up 0.1% at 96.87. The index has strengthened four weeks in a row, gaining 0.4% last week.
"The dollar index was firm all last week, bouncing back after the mid-term election results. Looking ahead, moves will be driven by the developments around the Italian budget and Brexit politics," said Sim Moh Siong, currency strategist at Bank of Singapore.
A stronger dollar can make dollar-denominated assets, like gold, more expensive to potential buyers holding other currencies.