2021.05.1710:30:00UTC+00Gold Prices Rise As Dollar Stays On Back Foot

Gold prices rose for a third day running on Monday to hold near three-month highs as surging COVID-19 cases in some Asian countries and inflation pressures tempered demand for riskier assets.

Spot gold rose 0.4 percent to $1,850.36 an ounce, after having gained 0.9 percent on Friday. U.S. gold futures were up 0.7 percent at $1,850.95.

The dollar weakened amid dovish Fed expectations and Treasury yields eased as investors await the minutes from the Federal Open Market Committee's latest meeting, due out Wednesday, for further clues to officials' views on the recovery.

Disappointing U.S. retail sales data released on Friday, mixed economic data from China and a worsening coronavirus outbreak in Asia also supported the precious metal's safe-haven appeal.

The daily new COVID cases being registered in India fell below 3 lakh after 26 days, but the death toll climbed to 2,74,390 with 4,106 fatalities.

Elsewhere in Japan, the government enhanced its response to tackle the fourth wave of coronavirus infections with expanded and extended state of emergency in more areas.

Taiwan and Singapore announced restrictions on public gatherings and other curbs over the weekend following a rise in new infections.