FX.co ★ Gold Slips As Dollar Benefits From Inflation Fears

Gold prices were moving lower on Monday, Treasury yields climbed, and the dollar rose against other major currencies amid bets of further monetary policy tightening by the U.S. Federal Reserve.

Spot gold slipped 0.3 percent to $1,964.71 per ounce, while U.S. gold futures were down 0.2 percent at $1,981.75.

Inflation fears returned to the fore after a surprise output cut announcement by the Organization of Petroleum Exporting Countries and allies (OPEC+).

Oil prices jumped more than 5 percent after the oil cartel on Sunday announced further oil output cuts of around 1.16 million barrels per day to support prices.

Saudi officials claimed the unexpected cut was a "precautionary measure aimed at supporting the stability of the oil market."

The move by oil producers brewed some concerns over a potential resurgence in inflation and more policy tightening by major central banks, particularly the Fed.