While gold found support from the decline in US bond yields and the weakening dollar, the record was renewed on the gram gold side.
Gold climbed to its highest level in almost three weeks on the back of falling US bond yields and a weakening dollar ahead of critical inflation data to be released on Wednesday.
Spot gold is trading at $1,937 an ounce.
The decline in US bond yields on Monday had a positive impact on the non-interest-yielding precious metal.
Although the US CPI data to be announced on Wednesday is expected to reveal a further slowdown in inflation, it is considered that the Fed may decide to increase interest rates at its meeting on July 26.
Swap contracts show that a 25 basis point rate hike in July is fully priced in.
“Consumer price data will be vital evidence to help shape the Fed’s next steps,” said Priyanka Sachdeva, Analyst at Phillip Nova Pte Ltd. “A softer Fed stance will remove the dollar’s appeal, which bodes well for dollar-priced gold.”
Spot gold has been trading in a tight range this month amid a lack of strong catalysts to drive it.