Shafaq News/ Gold prices scaled a near five-month high on Tuesday, driven by a weaker dollar and growing inflationary pressures, while investors awaited more U.S. data to gauge the extent of the global economic recovery.
Spot gold was up 0.4% at $1,915.01 per ounce by 0636 GMT, its highest since Jan.8.
U.S. gold futures rose 0.6% to $1,917.20.
“Gold prices are riding a very strong upward trend ... this is against the backdrop of a falling U.S. dollar and also inflation concerns,” said Margaret Yang, a strategist at Daily FX.
“Perhaps another fundamental factor behind gold is the return of Chinese and Indian buyers. In the near-term, if gold can breach the $1,922 per ounce mark, it can open the room for further upside potential.”
The dollar index was down 0.3% against its rivals, making gold less expensive for other currency holders. The U.S. unit registered its second consecutive monthly loss.
Last week, data showed U.S. consumer prices surged in April, with a measure of underlying inflation blowing past the Federal Reserve’s 2% target.
Market participants’ focus this week will be on key U.S. economic readings, including non-farm payrolls data due on Friday.