Gold prices retreated for a second straight session on Monday as the dollar and stocks advanced, but remained above the critical support at $1200.
The precious metal hit a bottom of $1205.36 an ounce, while currently trading around $1208.15 from the opening at $1225.06.
After ending last week on a gain, the dollar strengthened today, buoyed by upbeat U.S. CPI that signaled inflation soared by the most in nearly 4-1/2 years in January.
The green currency surged to 97.06 from the session’s opening at 96.77, damping demand on bullion as an alternative investment.
Asian shares extended last week’s gain, boosted by the rise in oil prices, where the Shanghai Composite Index edged up 2.35 percent.
Crude oil surged to $32.56 a barrel from the opening at $31.94, after finishing last week on an advance.
Gold ended last week on a loss on some profit taking from investors after the rise in prices to a one-year high of $1263.09.
However, gold is still finding support near the psychological level of $1200, which may help it to rise again.
