On Monday, Gold was little changed at $1,925. Economists at ANZ Bank analyze XAU/USD outlook.

Traders remain wary ahead of the CPI data

The weaker USD helped reverse earlier losses in the gold market. However, traders remain wary ahead of the CPI data. Even if inflation falls, the market is still expecting the US Federal Reserve to raise rates later this month. 

The market is finding support from sovereign investors. A survey from Invesco indicated they still favour gold as an inflation hedge.