FX.co ★ Gold Inches Higher On Dollar Weakness

Gold edged higher on Monday and the dollar traded weak as investors awaited the release of U.S. inflation report later this week for more clarity on the Federal Reserve's rate path.

U.S. reports on personal income and spending, durable goods orders, housing starts and new and existing home sales due this week may also shed more light on the U.S. economic and rate outlook.

Spot gold edged up 0.2 percent to $2,022.93 per ounce, while U.S. gold futures were marginally higher at $2,036.65.

Fed rate uncertainty prevailed after New York Fed chief Williams said that a March cut seems 'premature', tempering market speculation about imminent rate cuts.

Also, Fed Bank of Chicago President Austan Goolsbee said on Sunday in an interview on CBS that it's too early to declare victory over inflation fight, and interest-rate decisions would depend on incoming data.

Closer home, European Central Bank (ECB) Governing Council Joachim said Friday that the ECB has probably concluded its hiking cycle, but it's still too early to consider lower borrowing costs.

Fellow member Madis Muller also indicated that it's too early to talk about rate cuts in the near term.

Elsewhere, the Bank of Japan (BOJ) began a 2-day meeting amid speculation it could change its forward guidance on interest rates or provide signals on policy change.

Most economists expect the BOJ to ditch negative interest rates by the end of next year.