Gold edged lower on Monday as the dollar rose after bullion notched a more than 2% ​gain in the previous ⁠session, as cooler-than-expected U.S. inflation data lifted expectations for interest rate ‌cuts by the Federal Reserve.

 

FUNDAMENTALS

* Spot gold fell 0.4% to $5,020.10 per ounce by 0111 GMT after ​gaining 2.5% in the previous session.

* U.S. gold futures for April delivery lost ​0.1% to $5,039.50 per ​ounce.

* The U.S. dollar index <.DXY rose on Monday, making greenback-priced bullion more expensive for holders of other currencies.

* The U.S. Consumer Price ⁠Index rose 0.2% in January, below economists' expectations of a 0.3% increase, following an unrevised 0.3% gain in December, the Labor Department said on Friday. Lower inflation usually increases the chances for interest rate cuts.

* Market participants currently anticipate ​a total ‌of 75 basis points ⁠in rate cuts ⁠this year, with the first expected in July, according to data compiled by LSEG.

* ​Non-yielding bullion tends to do well in low-interest-rate environments. * ‌Meanwhile, the U.S. Federal Reserve is expected ⁠to name Randall Guynn as its new director of supervision and regulation, said two people familiar with the matter, putting a Wall Street veteran with deep banking ties in a powerful position policing the industry. * Elsewhere, the U.S. military is preparing for the possibility of sustained, weeks-long operations against Iran if President Donald Trump orders an attack, two U.S. officials told Reuters, in what could become a far more serious conflict than previously seen between ‌the countries. * While, Israeli Prime Minister Benjamin Netanyahu said ⁠on Sunday he told U.S. President Donald Trump last ​week that any U.S. deal with Iran must include the dismantling of Iran's nuclear infrastructure, not just stopping the enrichment process.

* Spot silver was down 0.6% at $76.92 ​per ounce, after ‌a 3% rise on Friday.

* Spot platinum shed 0.4% ⁠to $2,054.35 per ounce, while palladium rose ​0.4% to $1,692.23. (Reporting by Ishaan Arora; Editing by Rashmi Aich)