Gold futures hovered around the crucial $1,950 mark to kick off the trading week following last week’s drop. The yellow metal recorded tepid gains on a weaker US dollar, but they were capped by rising Treasury yields. All eyes will be on this week’s inflation report and a higher-than-expected print could weigh on financial markets.

December gold futures picked up $6.20, or 0.32%, to $1,949.00 per ounce at 14:32 GMT on Monday on the COMEX division of the New York Mercantile Exchange. Gold is coming off a weekly loss of about 1% but remains up 6.5% year-to-date.

Silver, the sister commodity to gold, firmed above $23 to start the trading week. October silver futures tacked on $0.226, or 0.98%, to $23.40 an ounce. The white metal declined 5% last week and is down more than 3% on the year.

The yellow metal inched higher on a weaker greenback that was caused by remarks from Bank of Japan (BoJ) Governor Kazuo Ueda. Speaking in an interview with a local newspaper, Ueda suggested that Tokyo could abandon its decades-old negative interest rate policy (NIRP). This supported the yen and hurt the buck.

The US Dollar Index (DXY), a measurement of the greenback against a basket of currencies, fell 0.63% to 104.43, from an opening of 105.09. The index is up 0.9% year-to-date. But a weaker buck is good for dollar-denominated commodities because it makes it cheaper for foreign investors to purchase.

Treasury yields were mostly up across the board as investors are gradually changing their tune on interest rates, with many fearing that the Federal Reserve could actually pull the trigger on one more rate hike this year.

The benchmark ten-year yield rose 3.4 basis points to 4.29%. The two-year yield added 1.1 basis points to 4.995%, while the 30-year bond jumped 4.5 basis points to 4.377%.

Gold is typically sensitive to movements in interest rates because it can influence the opportunity cost of holding non-yielding bullion.

This week, the consumer price index (CPI) will be released, and the growth rate is forecast to increase for the second consecutive month. The consensus estimate of 3.6% and core inflation, which strips the volatile food and energy components, is expected to slide to 4.3%.

In other metal markets, October copper futures surged $0.0875, or 2.35%, to $3.805 per pound. October platinum futures advanced $7.60, or 0.83%, to $902.20 an ounce. October palladium futures surged $18.20, or 1.53%, to $1,210.50 per ounce.