Gold rose 2.9% last week
USD weakness supports gold
US producer inflation data is the focus.
Gold held on to its gains at a 9-month high amid continued weakness in the US dollar earlier in the week.
Highlighting the Asian session, the precious metal strengthened at around $1,925 per ounce, while gold futures were higher at $1,928 per ounce.
In the past week, the price of gold recorded a weekly gain of around 2.9% following the fall of the US dollar and the expectation that the Federal Reserve (Fed) will raise rates smaller at the next meeting.
The US currency king dollar continued to extend its decline against its main rival on Monday, seeing the dollar index weaker below the 102.00 price level.
Following on from the US consumer inflation data showing a decline to the lowest level since October 2021 with an increase of 6.5%.
Markets now place expectations that the Fed will slow rate hikes to 25 basis points at a policy meeting in early February.
Even so, investors will still focus on US producer inflation data to be published this week for confirmation of whether price cuts are on track.
