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Gold Holds Steady In Lackluster Trade

Gold held steady on Monday as benchmark 10-year U.S treasury yields eased, lowering the opportunity cost for holding non-interest bearing bullion.

Spot gold edged up 0.1 percent to $1,790.19 per ounce, while U.S. gold futures were little changed at $1,791.60.

The dollar index hit a more than two-week high after comments from several Fed officials supported a reduction in stimulus measures this year.

Federal Reserve Bank of Philadelphia President Patrick Harker said that he supports moving toward a tapering process sooner rather than later.

Investors now await U.S. consumer inflation figures for August this week amid concerns the Federal Reserve and other central banks might move sooner to nudge interest rates up from the ultra-low levels.

U.S. wholesale inflation data published late last week showed prices climbed an annual 8.3 percent last month, marking the biggest annual gain since the Labor Department started calculating the 12-month number in 2010.

Elsewhere, Japan's wholesale inflation hovered near a 13-year high in August as the country prepares for a leadership transition.

This week's trading may also be impacted by some key U.S. economic data, including reports on retail sales, industrial production, import and export prices, consumer sentiment and regional manufacturing activity.

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