Green start to the week in gold

Gold, which had a limited leveling off after strong US employment data last week, entered the new week with an increase. The record streak seen in gold last week was balanced by data from the US, while a premium was observed in the first transactions of the first trading day of the new week. In the first transactions of the new week, gold tested above $2,350 an ounce in the spot market. Gold has gained more than 17 percent since mid-February; at least some of the gains were due to optimism that the Fed was approaching a rate cut. Central bank demand was also a factor; the People's Bank of China reported that it bought gold for the 17th consecutive month in March. Investors will be closely watching US March inflation data due on Wednesday, which could shed more light on where policymakers stand on lowering borrowing costs. Investors, meanwhile, continue to monitor tensions in the Middle East. Israel said on Sunday that it would withdraw some troops from southern Gaza after Prime Minister Benjamin Netanyahu said victory was imminent. Meanwhile, Iran prepared to respond to a suspected Israeli attack on its consulate in Syria, while Hezbollah warned it was ready for war.