Gold prices held firm above the key $1,900-level on Monday after US consumer prices rose more than expected in April and supported the metal as an inflation hedge.

FUNDAMENTALS

Spot gold was steady at $1,903.25 per ounce by 0036 GMT.

US gold futures edged 0.1% higher to $1,907 per ounce.

US consumer prices surged in April, with a measure of underlying inflation blowing past the Federal Reserve's 2% target and posting its largest annual gain since 1992.

The US 10-year Treasury yield fell to 1.593%, reducing the opportunity cost of holding non-interest bearing gold.

The White House on Friday sent Congress a $6 trillion budget plan that would ramp up spending on infrastructure, education and combating climate change.

Asian shares edged higher on Monday, looking to extend their recent rally to a third week should US jobs figures show the expected revival in hiring in May and keep the global recovery on track.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.1% to 1,043.21 tonnes on Friday from 1,044.08 tonnes on Thursday.

Physical gold demand in second-biggest bullion consumer India was negligible last week with most jewellery stores still shut by COVID-19 lockdowns, forcing dealers to offer steep discounts.

Japan's industrial output rose in April, helped by the production of general purpose and electrical machinery, in a sign manufacturers continued to benefit from a recovery in appetite for goods in the United States and China.

Palladium fell 0.2% to $2,819.14 per ounce, silver gained 0.2% to $27.94 and platinum rose 0.5% to $1,182.74.