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Gold prices rose on Monday, supported by a retreat in the dollar as investors looked forward to U.S. inflation data that could define the Federal Reserve's moves on interest rates.

Spot gold gained 0.3% to $1,922.89 per ounce by 0313 GMT, having lost 1% in the previous week. U.S. gold futures rose 0.2% to $1,946.30.

Gold should be supported above the $1,900 level if we see the U.S. dollar continue to decline on bets that the Fed are indeed done with their tightening cycle, and the potential for them to cut rates sooner than anticipated, said Matt Simpson, a senior analyst at City Index.

Gold had found support around its 200-day moving average, an important technical level not easy to crack, he said, adding that if U.S. inflation undershoots that could weigh further on the U.S. dollar.

Spot gold may retest a resistance at $1,930 per ounce, according to Reuters technical analyst Wang Tao. [TECH/C]

The U.S. dollar and benchmark 10-year bond yields dropped 0.3%, making non-yielding bullion more attractive for overseas buyers. [USD/] [US/]

"The precious metal will likely be relying on a pullback in yields in order to again challenge the $1,950 level," KCM Trade Chief Market analyst Tim Waterer said in a note.

The U.S. Consumer Price Index (CPI) data for August due on Wednesday is expected to shape the Fed's interest rate decisions this year.

Ahead of their policy-setting meeting this month, Fed policymakers have been pretty clear about two things: They are not itching to raise interest rates, but few among them are ready to declare victory, either.

Elsewhere, spot silver climbed 0.5% to $23.02 per ounce, platinum was up 0.4% at $896.16 after a 7% decline last week, and palladium edged 0.5% higher to $1,203.68.