The gold -priced metal cut gains in early trade in the week as treasury yields rose after being driven by US producer price index readings that beat market expectations.
At the beginning of the opening of the European session, gold prices traded around $ 1,740 per ounce.
Data published on Friday has shown the biggest annual increase in 9 and a half years in U.S. producer prices.
This reading thus supports market expectations for a higher rise in US inflation data to be published on Tuesday.
A stronger -than -expected rise in inflation could trigger a rise in US bond yields and provide strength for US dollar currency trading.
However, analysts also did not rule out the possibility that if the price of gold can hold on to $ 1,750 per ounce, it has the potential to jump higher to $ 1,800 per ounce as inflation usually also provides support for the yellow metal.
Meanwhile, a positive statement from Federal Reserve (Fed) Chairman Jerome Powell who said that the US economy was ready for stronger growth also influenced the movement of gold prices earlier in the week.
