LONDON: Gold prices nudged up on Monday with some support from weaker US bond yields, but a resurgent dollar kept the metal on a tight leash as investors awaited US inflation readings later this week.

Spot gold rose 0.1% to $1,789.42 per ounce by 1158 GMT, while US gold futures steadied at $1,791.30.

Benchmark 10-year U.S treasury yields eased, lowering the opportunity cost for holding non-interest-bearing bullion.

Investors are now eying US consumer price data due on Tuesday which could have a bearing on the timeline the Federal Reserve may adopt to withdraw its economic support.

The data comes on the heels of comments from several Fed officials that the central bank should begin tapering asset purchases this year.

“Price pressure for gold is still on the rise, but with growth not strong enough to support a strong amount of tapering, let alone a rate hike in the US, the outlook is still positive once we get some momentum,” Saxo Bank analyst Ole Hansen said.

Weighing on gold, the dollar index hit a more than two-week high, raising the metal’s cost for holders in other currencies.

“The Sept 22nd Fed meet also looms large for gold,” Citi Research said in a note, noting that while it maintained a slight hawkish bias heading into the meeting, a dovish surprise could allow gold to break higher towards $1,900.

Citi projected a lower trading band for the precious metal around $1,700 into year-end, albeit with a low conviction.

Platinum eased 0.3% to $952.78 having earlier hit its lowest since November 2020.

“Demand for platinum from the auto industry is slowing even though we’re seeing some signs of demand switching from palladium to platinum on a relative basis, challenging both investment and physical demand,” Saxo’s Hansen said.

Palladium rose 0.6% to $2,152.72, after falling to a trough since August 2020.

Silver dipped 0.4% to $23.62.