Gold hits over 3-month high ahead of US inflation data, Fed chair speech

On the geopolitical front, the U.S. threatened Iran with what it called "the greatest financial offensive ever marshalled" as it prepared to roll out economic sanctions that target Iran's trade partners. Oil prices slipped more than $1 a barrel as investors took profits ahead of the expected announcement. O/R

Among other metals, spot silver XAG= fell 0.3% to $68.76 per ounce. Platinum XPT= lost 0.5% to $1,868.03 while palladium XPD= was down 0.3% at $1,345.87.

Gold prices hit their highest levels in more than three months on Monday as a subdued dollar lent support, while focus shifted to key U.S. inflation data and a speech later this week by Federal Reserve Chair Kevin Warsh.

Spot gold XAU= was up 0.5% at $4,627.42 per ounce, as of 0155 GMT, after hitting its highest level since May 15 earlier in the session. Prices gained more than 5% last week.

U.S. gold futures GCcv1 edged 0.1% higher to $4,683.80.

A wavering dollar teetered near multi-month lows in a market unsettled by the U.S. Treasury's promise to buy back more long bonds. A weaker U.S. dollar makes greenback-priced bullion more affordable for holders of other currencies. USD/

"Gold is looking spritely to start the week and has stepped back into bid mode and is taking its cues primarily from the softer dollar and focusing more on what higher yields may be signaling about underlying economic strains and policy uncertainty," said Tim Waterer, chief market analyst at KCM Trade. US/