Gold edged lower on Monday as the dollar rose after bullion notched a more than 2% gain in the previous session, as cooler-than-expected U.S. inflation data lifted expectations for interest rate cuts by the Federal Reserve.
FUNDAMENTALS
* Spot gold fell 0.4% to $5,020.10 per ounce by 0111 GMT after gaining 2.5% in the previous session.
* U.S. gold futures for April delivery lost 0.1% to $5,039.50 per ounce.
* The U.S. dollar index <.DXY rose on Monday, making greenback-priced bullion more expensive for holders of other currencies.
* The U.S. Consumer Price Index rose 0.2% in January, below economists' expectations of a 0.3% increase, following an unrevised 0.3% gain in December, the Labor Department said on Friday. Lower inflation usually increases the chances for interest rate cuts.
* Market participants currently anticipate a total of 75 basis points in rate cuts this year, with the first expected in July, according to data compiled by LSEG.
* Non-yielding bullion tends to do well in low-interest-rate environments.
* Meanwhile, the U.S. Federal Reserve is expected to name Randall Guynn as its new director of supervision and regulation, said two people familiar with the matter, putting a Wall Street veteran with deep banking ties in a powerful position policing the industry.
* Elsewhere, the U.S. military is preparing for the possibility of sustained, weeks-long operations against Iran if President Donald Trump orders an attack, two U.S. officials told Reuters, in what could become a far more serious conflict than previously seen between the countries.
* While, Israeli Prime Minister Benjamin Netanyahu said on Sunday he told U.S. President Donald Trump last week that any U.S. deal with Iran must include the dismantling of Iran's nuclear infrastructure, not just stopping the enrichment process.
* Spot silver was down 0.6% at $76.92 per ounce, after a 3% rise on Friday.
* Spot platinum shed 0.4% to $2,054.35 per ounce, while palladium rose 0.4% to $1,692.23.
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