Gold prices rose toward $1,650 an ounce on Monday, recouping some losses from last week on technical buying, while benefiting from a slight retreat in the dollar.
Still, persistently high inflation and bets on further monetary tightening kept downward pressure on bullion prices. A University of Michigan survey pointed to improved consumer sentiment in October, but inflation expectations increased for the first time since March.
That has exacerbated concerns of unsustainable price growth after September’s CPI print came in hotter than expected, prompting US Federal Reserve officials to signal readiness to raise interest rates higher than previously planned. A stronger demand for the dollar as a safe-haven asset amid heightened economic uncertainties also weighed on gold.
