2018.02.1202:20:00UTC+00Gold Prices Climb on Weaker Dollar Ahead of U.S. Data

Gold prices increased on Monday as the U.S. dollar fell after last week's rally though investors are watching for inflation data from the United States later this week for signs of the intensity of expected U.S. interest rate hikes.

Spot gold climbed 0.6 percent to $1,323.68 per ounce. Last week, the precious metal dropped 1.2 percent for a second straight weekly drop.

U.S. gold futures for April delivery increased 0.8 percent to $1,326.30 per ounce.

A weaker greenback makes dollar-denominated gold less expensive for holders of other currencies.

U.S. consumer price data will be released on Wednesday that should give clearer signs on the pace of inflation and with it the frequency of the anticipated interest rate rises. Concerns of rising inflation triggered the global equity drop last week.

Gold prices slipped 2.5 percent in the prior two weeks before Monday.

Hedge funds and money managers reduced their net-long position in COMEX gold for the first time in eight weeks in the week to Feb. 6, and trimmed it in silver, U.S. Commodity Futures Trading Commission data showed on Friday.

Spot gold is expected to end its current bounce in a resistance zone of $1,325 to $1,330 per ounce and then revisit its Feb. 8 low of $1,306.81, according to Reuters technical analyst Wang Tao.

In other precious metals, silver added 0.6 percent at $16.45 per ounce. Platinum climbed 0.6 percent to $970.00 per ounce. On Friday, it fell to $953 an ounce, the lowest since Jan. 10.

Palladium was up 0.8 percent to $984.00 per ounce. On Friday, it dropped to its lowest since Oct. 25.