London — Gold prices edged higher on Monday as the dollar retreated from a 2018 peak after subdued US inflation data last week highlighted the prospect of fewer US interest rate increases than previously expected this year. Spot gold was up 0.2% at $1,320.8 an ounce at 13.48 GMT, having on Friday touched $1,325.96, its highest since April 26. US gold futures were unchanged at $1,320.7. A weaker US currency makes dollar-denominated gold cheaper for holders of other currencies — a relationship used by funds to generate buy and sell signals. Though the dollar eased on Monday, its performance against a basket of other major currencies touched 93.416 last week for a gain of more than 4% since April 17 and its highest level since December. "Gold is dollar-driven but it is doing reasonably well given the dollar is generally stronger," said Macquarie commodities strategist Matthew Turner. Further support could come from rising security risks in the Middle East after the United States said i...
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