Gold shrugged off a stronger US dollar to gain about $1 on Monday as investors weighed inflation prospects on the back of costly oil prices. Gains in Tokyo Commodity Exchange gold futures also gave gold a leg-up in trading across Asia, dealers said. "We're seeing positive sentiment today, with strong interest in gold," a dealer said.
Spot gold was at $584.00/584.70 an ounce, compared with $582.80/583.50 late in New York on Friday. The benchmark most-distant April TOCOM contract was at 2,211 yen ($18.97) a gram, up 10 yen or almost up 0.5 percent from Friday's close of 2,201 yen.
Oil slipped on Monday after signs of improved Iraqi production, but held near $71 a barrel as US gasoline demand was still growing. US crude traded 9 cents down at $70.78 a barrel after a rise of 3 cents on Friday that took gains for last week to 1.4 percent.
"Oil at around $70 is a cause for inflationary concern," another bullion dealer said. Gold, up 13 percent this year attracts above-average interest among investors as a hedge against an inflation-hobbled dollar.
Gold's gains were limited, however, by the dollar holding near two-month highs against the yen and euro and due to caution among some investors ahead of US Federal Reserve's monetary policy setting meeting this week, dealers said.
Spot gold was capped around the 14-day moving average (MA) of around $585, while solid support seen around the seven-day MA of about $579. Silver was unchanged at $10.30/10.40 an ounce from Friday's New York.
Platinum edged up to $2,169/1,175 an ounce compared with $1,165/1,170 in New York. Sister metal palladium rose slightly to $301/307 an ounce from $301/306.
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