Gold recovers from 3-week low as dollar declines ahead of US inflation print

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Also Read: US Federal Reserve December Meet: See date, timing, and schedule details here An upbeat US jobs report last week dampened expectations the Federal Reserve could cut interest rates as soon as March. The US consumer Price Index (CPI) report. Economists polled by Reuters expect US headline inflation to be flat for November and core inflation to be steady at an annual pace of 4 per cent - well above the Fed's 2 per cent target.

The Federal Open Market Committee's two-day monetary policy meeting will end on Wednesday with its interest rate decision and the release of its summary economic projections. The Fed is widely expected to leave rates unchanged at 5.25 per cent-5.50 per cent this week, with about 77 per cent chance of a rate cut in May, according to the CME FedWatch Tool. Lower interest rates tend to support non-interest-bearing bullion.

Gold's trajectory could also be influenced by policy meetings of the European Central Bank and the Bank of England on Thursday. Silver rose 0.7 per cent to $22.94 per ounce, while platinum gained 1.4 per cent to $922.34, and palladium climbed 2 per cent to $976.38 per ounce, according to Reuters. In the last FOMC meeting, the US Fed decided to keep the key overnight interest rates unchanged at 5.25-5.50 per cent.