Gold prices rose to their highest level in more than three months on Monday, supported by a weaker U.S. dollar as investors turned their attention to key American inflation data and a closely watched speech by Federal Reserve Chair Kevin Warsh later this week.
Spot gold gained 0.5% to $4,627.42 per ounce as of 0155 GMT, after touching its highest level since May 15 earlier in the session.
The precious metal has extended a strong recent rally, having gained more than 5% last week as investors assessed shifting expectations for U.S. monetary policy and growing economic uncertainty.
U.S. gold futures also moved higher, edging up 0.1% to $4,683.80 per ounce.
The latest advance came as the U.S. dollar struggled to regain momentum, hovering near multi-month lows. A softer dollar generally supports gold because the metal is priced in the U.S. currency, making bullion cheaper for buyers holding other currencies.
The dollar has also been affected by renewed concerns in the U.S. Treasury market after the government signaled plans to buy back longer-dated bonds. The move has unsettled investors and added another layer of uncertainty to financial markets.
