<p>Gold prices edged higher on Monday on a softer dollar, although prospects of central banks worldwide retaining their aggressive monetary policy stance limited the gains for safe-haven bullion.</p>.<p>Spot gold rose 0.3 per cent to $1,663.99 per ounce, as of 0416 GMT. US gold futures were flat at $1,671.50.</p>.<p>The dollar index slipped in early Asia trade against a basket of currencies, while benchmark US 10-year Treasury yields were slightly lower after rising for two days.</p>.<p>"Recovery (gold's) seems to be more of a near-term moderation from oversold technical conditions, as no slack in Fed's tightening policies may suggest that any upside could potentially be sold into," said IG market strategist Yeap Jun Rong.</p>.<p>The Federal Reserve's No. 2 official on Friday added her full endorsement of the US central bank's higher-for-longer game plan for interest rates to curb inflation.</p>.<p>Last month, the Fed raised its policy interest rate by 75 basis points, its third straight increase of that size, and signalled more large increases to come this year.</p>.<p>Gold posted its sixth straight monthly decline in September, marking its longest streak of monthly declines in four years.</p>.<p>Though gold is often seen as a hedge against inflation, rising US interest rates increase the opportunity cost of holding the non-yielding asset and boost the dollar.</p>.<p>Meanwhile, Euro zone inflation hit a record high last month, reinforcing expectations for another jumbo rate hike this month from the European Central Bank.</p>.<p>On investors' radar are the US non-farm payrolls data due on Friday and a host of manufacturing PMI data for insight into the health of the global economy.</p>.<p>"A more lukewarm (payrolls) reading may be preferred by gold bulls for a relief rally, but the absence of any pause in Fed's policies could still suggest that the overall downward trend may remain intact," IG's Yeap Jun Rong said.</p>.<p>Spot silver rose 1.2 per cent to $19.23 per ounce, platinum edged 0.2 per cent higher to $860.61 and palladium was up 0.3 per cent to $2,164.89.</p>
<p>Gold prices edged higher on Monday on a softer dollar, although prospects of central banks worldwide retaining their aggressive monetary policy stance limited the gains for safe-haven bullion.</p>.<p>Spot gold rose 0.3 per cent to $1,663.99 per ounce, as of 0416 GMT. US gold futures were flat at $1,671.50.</p>.<p>The dollar index slipped in early Asia trade against a basket of currencies, while benchmark US 10-year Treasury yields were slightly lower after rising for two days.</p>.<p>"Recovery (gold's) seems to be more of a near-term moderation from oversold technical conditions, as no slack in Fed's tightening policies may suggest that any upside could potentially be sold into," said IG market strategist Yeap Jun Rong.</p>.<p>The Federal Reserve's No. 2 official on Friday added her full endorsement of the US central bank's higher-for-longer game plan for interest rates to curb inflation.</p>.<p>Last month, the Fed raised its policy interest rate by 75 basis points, its third straight increase of that size, and signalled more large increases to come this year.</p>.<p>Gold posted its sixth straight monthly decline in September, marking its longest streak of monthly declines in four years.</p>.<p>Though gold is often seen as a hedge against inflation, rising US interest rates increase the opportunity cost of holding the non-yielding asset and boost the dollar.</p>.<p>Meanwhile, Euro zone inflation hit a record high last month, reinforcing expectations for another jumbo rate hike this month from the European Central Bank.</p>.<p>On investors' radar are the US non-farm payrolls data due on Friday and a host of manufacturing PMI data for insight into the health of the global economy.</p>.<p>"A more lukewarm (payrolls) reading may be preferred by gold bulls for a relief rally, but the absence of any pause in Fed's policies could still suggest that the overall downward trend may remain intact," IG's Yeap Jun Rong said.</p>.<p>Spot silver rose 1.2 per cent to $19.23 per ounce, platinum edged 0.2 per cent higher to $860.61 and palladium was up 0.3 per cent to $2,164.89.</p>