Gold prices gain ground as dollar tapers off

Gold prices rose in European trade on Monday, resuming their recovery from a one-week low as the US dollar slows down.

Now investors await a batch of data this week that will help determine the likely bath ahead for US monetary policies.

Gold Prices Today

Gold prices rose 0.6% to $1,930 an ounce, with a session-low at $1,916, after losing 0.05% on Friday, approaching a one-week low at $1,915. 

The precious metal lost 1.1% last week, the first weekly loss in three weeks following a spate of US positive data, which bolstered the case for another US interest rate hike this year. 

The Dollar

The dollar index fell 0.5% on Monday on track for the first loss in five sessions off six-month high at 105.15 against a basket of major rivals. 

Dollar is tapering off ahead of important US data this week, including consumer prices and producer prices data.

If the data beat expectations, it'll strengthen the likelihood of another US interest rate hike in November. 

The Federal Reserve 

Ahead of the Fed's September meeting, most  remarks from Fed officials indicated the Fed won't raise interest rates this month.

US Rates

Pricing for a 0.25% Fed interest rate hike at the September meeting stands at just 7%. 

However, pricing for a 0.25% US interest rate hike in November stands at a stronger 45%. 

The SPDR

Gold holdings at the SPDR Gold Trust remained flat on Friday for a second session at a total of 886.64 tonnes, the lowest since August 28.