Commodities

Gold Kick Off the Week With Gains as U.S. Dollar Weakens

Gold prices on the rise

Gold prices climbed on Asia’s Monday trade while the U.S. dollar index slipped, with investors on the lookout on the upcoming inflation data.

Spot gold climbed 0.6 percent to $1,323.68 per ounce. The yellow metal fell 1.2 percent for two consecutive weeks.

April Comex gold futures last traded at $1,326.30, climbing 0.81 percent on the day.While the U.S. dollar index declined 0.11 percent, to 90.22.

The precious metal bounced back after finishing its second week in a row in negative territory on Friday.

Gold prices had fallen 2.5 percent in the prior two weeks before Monday. Trading Commission data showed on Friday that hedge funds and money managers cut their net-long position in Comex gold for the first time in eight weeks in the week to February 6, and cut it in silver.

The dollar index fell 0.34 percent to 90.137 after climbing 1.4 percent last week.

A weaker dollar makes dollar-denominated gold less expensive for other currency holders.

The main macroeconomic driver is likely to be the U.S. CPI data that is scheduled for release on Wednesday.

Analysts are projecting to see very decent inflation figures from January.

On other precious metals, silver rose 0.6 percent to $16.45 per ounce.

Platinum edged up 0.6 percent to $970 per ounce after falling to $953 on Friday, its lowest since January 10.

Palladium added 0.8 percent to $984 per ounce after falling on Friday, its lowest since October 25.

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