Gold inched down to hit a near seven-month low on Monday as the dollar stayed strong, with traders digesting a key U.S. inflation report as they positioned for a slew of job market data due this week.

FUNDAMENTALS

* Spot gold was down 0.1% at $1,846.29 per ounce by 0039 GMT, its lowest level since March 10, after posting a 4% decline last week, its biggest drop since June 2021. U.S. gold futures fell 0.2% to $1,861.80.

* The dollar held near a 10-month high, while Treasury yields were off a 16-year peak.

* Underlying U.S. inflation moderated in August, with the annual rise in prices excluding food and energy falling below 4.0% for the first time in more than two years, data showed on Friday.

* Core personal consumption expenditures (PCE) price index, a measure of inflation closely watched by the Federal Reserve, has now averaged near the central bank's 2% target for the last three months.

* New York Fed President John Williams said the central bank may be done with rate rises as inflation pressures, while still elevated, are moving back toward the official target.

* Higher rates raise the opportunity cost of holding bullion, which is priced in dollars and does not yield any interest.

* Inflation in the euro zone fell to its lowest level in two years in September.

* The U.S. Congress passed a stopgap funding bill late on Saturday with overwhelming Democratic support to avoid the federal government's fourth partial shutdown in a decade.

* Spot silver dipped 0.71% to a six-month low at $22.00 per ounce, platinum rose 0.2% to $906.04 and palladium firmed 0.2% to $1,248.41.

* Robust demand from the solar industry and limited supply growth from mines will buoy silver prices once the period of higher global interest rates is over, analysts said. DATA/EVENTS (GMT) 0800 EU HCOB Mfg Final PMI Sept 0830 UK S&P GLBL/CIPS Mfg PMI Final Sept 0900 EU Unemployment Rate Aug 1345 US S&P Global Mfg PMI Final Sept 1400 US ISM Manufacturing PMI Sept (Reporting by Deep Vakil in Bengaluru; Editing by Rashmi Aich)