The precious metal hit a high of $1283.70 an ounce, while currently trading around $1280.92 from the opening at $1271.33.
The dollar index, which tracks the green currency’s movements versus a basket of six major currencies, retreated for the first time in three sessions after posting its second straight weekly gains the previous week.
The green currency is currently trading around 94.55, yet it edged up slightly versus the yen to trade around 108.73.
Data released last week showed that U.S. retail sales for April reported the biggest increase in a year, reflecting the strength of consumer spending.
Later in the week, eyes will focus on U.S. inflation and jobless claims data, as well as FOMC minutes, as investors will continue to look for clues about the future path of rate hikes.
With the U.S. economic outlook “definitely looking good,” two to three rate increases this year “definitely still makes sense,” San Francisco Federal Reserve Bank President John Williams said on Friday.
Gold tumbled for a second consecutive week last week due to the dollar’s strength, but still 20 percent higher since the beginning of 2016.
“Holdings in exchange-traded funds have jumped percent from a seven-year low on Jan. 6 to reach highest since December 2013,” according to Bloomberg.
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