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Gold prices eased on Monday from a one-month high scaled earlier in the session, as red-hot U.S. inflation data lifted Treasury yields and tempered the appeal of safe-haven bullion.

Spot gold was down 0.5% at $1,862.29 per ounce, as of 0205 GMT. U.S. gold futures also eased 0.5% to $1,866.80.

Gold, which is seen as a safe-haven asset in times of economic crises, hit its highest since May 9 earlier in the session at $1,877.05 per ounce.

However, benchmark U.S. 10-year Treasury yields also rose to their highest since May 9, weighing on demand for zero-yield gold. [US/]

"The fact that gold disconnected itself from moving inversely to the U.S. dollar suggests to me that markets are belatedly moving into a much more vigorous risk aversion mode (due to the inflation data)," OANDA senior analyst Jeffrey Halley said. [USD/]

U.S. consumer prices accelerated in May, suggesting that the country's central bank could continue with its 50-basis-points interest rate hikes through September to combat inflation.

"The data delivered an unsympathetic wakeup call to financial markets that inflation remains both entrenched and has real upside risks. Gold is benefiting from a swing to defensive haven positioning as equities and cryptos get hammered," Halley said.

Asian stocks sank on Monday on worries of a further aggressive Federal Reserve policy tightening, while a COVID-19 warning from Beijing added to concerns about global growth. [MKTS/GLOB]

It's a central bank-heavy week ahead, with the Fed expected to deliver its second straight half-point rate hike to bring inflation under control.

Bullion is often seen as an inflation hedge, but the opportunity cost of holding it is higher when the Fed raises short-term interest rates, as gold yields no interest.

Spot silver dipped 1.1% to $21.63 per ounce, platinum fell 1.5% to $958.51, and palladium dropped 2.1% to $1,894.72.