Spot gold was up 0.1% at $1,900.10 per ounce, as of 0518 GMT
Fed officials have repeatedly tamped down fears of inflation running persistently higher than its 2% target
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The dollar index, which measures the greenback against a basket of major currencies, has fluctuated narrowly around the psychologically important 90 level, and was last down 0.08% at 90.058.
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Prices paid by US consumers rose in May by more than forecast, extending a months-long buildup in inflation that risks becoming more established as the economy strengthens
Benchmarks rose across the region, but stayed in a relatively narrow range.
Wall Street's main indexes opened unchanged on Monday as investors remained on the fence ahead of key inflation data later this week
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We're in the happy period of global economy coming back to life, but we need to watch carefully the US inflation situation
U.S. gold futures slipped 0.3% to $1,892.30.
Spot gold was down 0.2% at $1,893.07 per ounce by 0308 GMT. Bullion has risen 0.7% so far this week, and was on track for its fourth straight weekly gain.
An uptick in the dollar and US Treasury yields pressured bullion, while investors awaited crucial US inflation data later on Friday
US inflation data will be released later in the day on Friday
This would push federal spending to its highest sustained levels since WW-II
Spot gold was up 0.2% at $1,883.21 per ounce by 0301 GMT. Last week, gold prices hit their highest level since Jan. 8 at $1,889.75
Asian shares got off to a cautious start on Monday as investors awaited key US inflation readings for guidance on monetary policy, while Bitcoin tried to steady after being hammered
Gold edged lower on Friday, as optimism around a swift economic recovery lifted appeal for riskier assets
Oil prices dropped over $2 a barrel on Wednesday to their lowest in three weeks, on worries that surging Covid-19 cases in Asia would dent demand for crude and US inflation fears
Japan's Nikkei fell 2.0 per cent and touched its lowest since early January, while Chinese blue chips lost 0.9 per cent