Gold prices edged higher on Monday as heated inflation kept returns on bonds low and reduced bullion's opportunity cost, though concerns over a faster pace of stimulus tapering by the US Federal Reserve limited gains.
Spot gold was up 0.2% at $1,847.95 per ounce, as of 0441 GMT. US gold futures fell 0.1% to $1,849.80.
The metal hit its lowest since November 10 earlier in the session, after comments from Fed Vice Chair Richard Clarida suggested the central bank would table the idea of tapering its asset purchases in its upcoming December meeting.
Higher rates generally translate into an increased opportunity cost of holding the metal, which pays no interest.
"In the short- to medium-term, gold's fundamentals look good because real (inflation-adjusted) yields are so negative, but eventually we'll get tighter monetary policy and gold will trend lower in the bigger picture," IG Markets analyst Kyle Rodda said.
The yield on 10-year Treasury Inflation Protected Securities was steady at -1.111% on Monday.
"There's also a growing sense that the United States and China are going to intervene to bring oil prices lower, one of the biggest drivers of inflation expectations, and this has weighed on gold's momentum around its role as an inflation hedge," Rodda said.
Also on investors' radar was President Joe Biden's appointment of a new Fed Chair with the White House saying there will be more to report on it early this week.
Market participants will also closely monitor the return of Covid-19 restrictions in parts of Europe and its potential impact on economic activity.
Indicative of sentiment, SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.8% to 985 tonnes on Friday from 976.87 tonnes on Thursday.
Spot silver rose 0.5% to $24.71 per ounce. Platinum gained 0.2% to $1,032.97 and palladium was steady at $2,062.22.
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