Gold futures tilted higher past $1,250, while the dollar index hit November 28 highs, following earlier inflation data from the US.
As of 03:27 GMT, gold futures due in February rose 0.06% to $1,250.10 an ounce, while the dollar index added 0.06% to 97.28, marking two-week highs.
Earlier US data showed producer prices rose 0.1% in November, beating estimates of no change, while slowing down from October's 0.6% increase.
Core prices, excluding food and fuel, rose 0.3%, beating forecasts of 0.1% and missing estimates of 0.5%.
Finally, Gold holdings at SPDR Gold Trust, the world's largest gold-backed investment fund, rose 0.59 tonnes on Monday to a total of 760.32 tonnes, after marking the second monthly profit in a row last month.