Gold futures are heading toward another session to kick off the trading week, driven by a weaker US dollar and lower Treasury yields. But the elephant in the room may be higher inflation, elevating demand for investors fearful of the growing cost of living and diminishing value of their currency. So is $1,900 the next target?

June gold futures advanced $10.60, or 0.58%, to $1,848.70 per ounce at 12:54 GMT on Monday on the COMEX division of the New York Mercantile Exchange. The yellow metal is coming off a weekly gain of about 0.6%, paring its year-to-date decline to below 3%.

Silver, the sister commodity to gold, is also extending its gains to start another week of trading. July silver futures surged $0.32, or 1.17%, to $27.685 per ounce. The white metal recorded a weekly gain of about 1% last week, increasing its 2021 rally to beyond 4%.

The greenback is slipping on Monday, with the US Dollar Index (DXY) down 0.01% to 90.31, from an opening of 90.32. The DXY has slumped over the last month by nearly 1%, although it did notch a weekly boost of 0.1%. A lower buck is good for commodities priced in dollars because it makes it cheaper for foreign investors to purchase.

The bond market was mixed. The benchmark 10-year Treasury yield was up 0.009% to 1.645%. The one-year bill shed 0.002% to 0.046%, while the 30-year bond jumped 0.008% to 2.364%. A weaker bond market is good for non-yielding bullion since it diminishes the opportunity cost.

Inflation is likely to be one of the key factors for gold prices moving forward. Last week, the US annual inflation surged to 4.2% in April, while producer prices soared 6.2%. At the same time, higher inflation could push the Federal Reserve to raise interest rates, which is typically bearish for gold prices.

In recent weeks, inflows into gold-dominated exchange-traded funds (ETFs) have risen, so this could support forecasts that gold demand could be renewed in the next several weeks.

In other metal markets, June copper futures tacked on $0.0105, or 0.23%, to $4.665 per pound. June platinum futures added $14.20, or 1.16%, to $1,237.00 an ounce. June palladium futures dipped $9.60, or 0.33%, to $2,885.00 per ounce.