US PPI and CPI data due later in the week
Dollar at its highest level in over two years
Gold hit highest since Dec. 12 on Friday

Jan 13 Reuters Gold prices eased on Monday as strong U.S. jobs data reinforced the Federal Reserve39;s cautious stance on interest rate cuts and boosted the dollar, though underlying safehaven demand amid uncertainty around Presidentelect Donald Trump39;s policies curbed losses.

Spot gold was down 0.1 at 2,686.33 per ounce as of 0911 GMT, off almost onemonth highs reached on Friday. U.S. gold futures were 0.2 lower at 2,710.60.

The dollar index hit an over twoyear high after the U.S. jobs report reinforced the Fed39;s cautious approach towards policy easing this year amid concerns of inflation from potential import tariffs under Trump.

A higher dollar makes the greenbackpriced bullion more expensive for foreign buyers.

Stronger dollar and higher U.S. rates remain a headwind for gold, but at the same time elevated market uncertainty coming from higher energy prices, potential tariffs and ongoing inflation concerns, supports safehaven demand for the yellow metal, UBS analyst Giovanni Staunovo said.

Trump will take office on Jan. 20 and some economists say his proposed tariffs could potentially ignite trade wars and inflation. In such a scenario, gold, considered a hedge against inflation and economic uncertainty, is likely to perform well.

U.S. consumer price index CPI, producer price index PPI, weekly jobless claims and retail sales…