Gold prices climbed on Monday, as weakness in the U.S. dollar and growth concerns in the economy lifted the metal, although non-yielding bullion pared some earlier gains on positive Treasury yields.

Spot gold rose 0.6% to $1,855.87 per ounce by 10:04 a.m. ET (1404 GMT). Prices rose over 1% and hit their highest since May 9 at $1,865.29 earlier in the session. U.S. gold futures gained 0.7% to $1,854.10.

“There is a strong corrective bounce in gold as the U.S. dollar is seeing a sharp fall,” said Kitco senior analyst Jim Wycoff.

“Traders and investors’ risk appetite remains far less than robust, which is prompting some safe haven demand for gold.

Investors are beginning to realise that inflation is going to be problematic for longer than just a transitory period.“

Although gold is considered a hedge against inflation, it’s highly sensitive to rising U.S. interest rates, which raise the opportunity cost of holding non-yielding bullion.

U.S. Treasury yields gained, but the dollar slumped to its lowest in a month. A weaker dollar makes gold cheaper for other currency holders.

“While today’s increase is welcomed by holders of gold, how much further the precious metal can climb is likely to be capped by the reality that central banks in both America and Europe are set on a course of interest rate hikes over the coming months,” Rupert Rowling, market analyst at Kinesis Money, said in a note.

The U.S. Federal Reserve’s May meeting minutes due on Wednesday will be closely parsed for signs on how aggressively the U.S. central bank is planning to raise interest rates.

Spot silver gained 0.4% to $21.84 per ounce, platinum firmed 1.3% to $967.84, and palladium climbed 2.4% to $2,010.69.

Russia’s Nornickel, the world’s largest producer of palladium, expects global palladium market deficit at 100,000 troy ounces in 2022, downgrading estimate from its February forecast.