Gold prices hit seven-week high on Monday as the dollar remained under moderate pressure at the start of the new week, making gold less expensive for other currency holders.
Spot gold rose 0.7 percent to $1,789.20 per ounce, marking its highest level since Feb.25. U.S. gold futures were up half a percent at $1,789.25.
The dollar weakened and benchmark U.S. 10-year Treasury yields edged lower towards multi-week lows touched last week after the U.S. Federal Reserve reiterated its view that any spike in inflation was likely to be temporary.
Christopher Waller, the newest governor on the Federal Reserve's Washington-based board, said on Friday that any accompanying spike in inflation will prove short-lived- echoing the view of most U.S. central bankers.
The European Central Bank meets on Thursday with no changes to rates or guidance expected.
On the vaccine front, half of all adults in the U.S. have received at least one COVID-19 shot, marking another milestone in the nation's vaccination campaign.
Pfizer Inc. and BioNTech SE today announced that they will supply an additional 100 million doses of COMIRNATY, the companies' COVID-19 vaccine, to the 27 European Union member states in 2021.
The agreement follows the European Commission's decision to exercise its option to purchase an additional 100 million doses under its expanded Advanced Purchase Agreement signed on February 17.