Gold prices ticked higher as the dollar eased on Monday, while investors looked towards key U.S. inflation data due this week that could throw some light on the Federal Reserve's interest rate stance.
Spot gold was up 0.47% to $1,945.899 per ounce. U.S. gold futures settled 0.6% higher at $1,950.20.
The dollar index was down 0.18%, making gold more expensive for overseas buyers.
U.S. consumer prices index (CPI) data will be released on Tuesday. According to a Reuters poll, core U.S. CPI month-over-month is expected to have risen 0.3% in October, with a year-over-year increase of 4.1%. Traders will also scan the U.S. producer price index data due on Wednesday.
If the data shows higher-than-expected inflation, gold will likely pull back as that would raise the possibility of another rate hike, said Bob Haberkorn, senior market strategist at RJO Futures.
"But, if data comes in line, gold will trade north of $1,950."
Higher interest rates dull non-yielding bullion's appeal.
The market is pricing in a 86% chance that the Fed will leave rates unchanged in December.
Bullion dipped nearly 3% last week as safe-haven demand driven by the conflict in the Middle East eased, while Fed Chair Jerome Powell struck a hawkish tone.
"Going forward, in the short-term the investor appetite to add length will rely on the extent of (geopolitical) escalation but (gold) will face headwinds from elevated U.S. real rates," Goldman Sachs said in a note.
"Tactically, we would view a potential selloff in gold as a buying opportunity as we see an environment with elevated risk channels ahead playing into gold's hedge qualities."
Ratings agency Moody's on Friday changed the outlook on government of United States of America's ratings to "negative" from "stable".
Spot silver added 0.3% to $22.2844 per ounce.
Platinum gained 2.82% to $863.58 and palladium gained 1.97% to $981.9669.