Gold gains as soft dollar lifts bullion appeal; Fed in focus

Gold gains as soft dollar lifts bullion appeal; Fed in focus

Gold prices firmed on Monday, propped up by a subdued dollar and slight retreat in the U.S. Treasury yields, with investors gearing up for speeches from U.S. Federal Reserve policymakers this week for cues on the central bank's rate hike timeline. Spot gold was up 0.4% at $1,757.00 per ounce, as of 0656 GMT, while U.S. gold futures were up 0.4% at $1,758.50. The dollar index softened, making bullion cheaper for holders of other currencies. Meanwhile the benchmark 10-year Treasury yields eased after hitting their highest since early-July. "Gold is still looking slightly precarious where it is right now, and it's probably bouncing off key technical level around $1,750," IG Market analyst Kyle Rodda said. A slew of Fed officials are due to speak this week including Chairman Jerome Powell, who will testify this week before Congress on the central bank's policy response to the pandemic. "There'll be a lot of questions being put to Fed speakers about what the dot plots implied last week and whether there is higher risk of heightened inflation going forward and that rate hikes could be coming in the first half of 2022," Rodda added. Gold is often considered a hedge against higher inflation,