Gold rises as oil and the dollar decline, with focus on US inflation data

Gold prices rose on Monday, supported by a weaker dollar and lower oil prices, as markets await key US inflation data this week for signals on the Federal Reserve's monetary policy. Spot gold gained 0.3 percent to $4,206.01 an ounce by 02:53 GMT, while US December gold futures rose 0.3 percent to $4,230.40.

Gold prices rose on Monday, supported by a weaker dollar and lower oil prices, as investors await key US inflation data this week for signals on the Federal Reserve's next monetary policy move. By 02:53 GMT, spot gold rose 0.3 percent to $4,206.01 an ounce. US gold futures for December delivery rose 0.3 percent to $4,230.40. Tim Waterer, chief market analyst at KCM Trade, said the drop in oil prices following Trump's announcement of an energy ceasefire between Russia and Ukraine, along with the weaker dollar, gave gold room to rise. He added that lower oil prices ease immediate concerns about inflation and interest rates. US President Donald Trump unexpectedly announced the energy ceasefire between Russia and Ukraine on Sunday. Markets await the US consumer price index report on Wednesday, followed by the producer price index and retail sales data on Thursday. Traders see a 17 percent chance of a rate hike in October and an 86 percent chance of one by December.