Gold
Gold prices rose to a more than one-week high on Monday, aided by inflation concerns and persistent geopolitical threats, as investors awaited important U.S. inflation data for clues on the Federal Reserve's interest rate rise trajectory. Furthermore, escalating tensions between Russia and Ukraine are supporting the yellow metal's price rise.
Having said that, despite the rise in consumer prices, gold prices are expected to fall in the long run since a rise in inflation would push the Fed to accelerate its tapering process and hike interest rates at a faster pace. When interest rates rise, so does the opportunity cost of storing the non-interest-bearing precious metal, eventually driving its price down.
Forex
The euro fell after the President of the European Central Bank (ECB), Christine Lagarde, remarked that she sees no need for the ECB to tighten monetary policy since she expects inflation in the area to moderate and settle near the ECB's objective of 2%.
The US dollar, on the other hand, gained after the employment data, which was issued last week, outperformed expectations, assuring investors that quick interest rate rises are a genuine possibility. The American inflation data, due out on Thursday, will almost certainly have an influence on the US dollar in the following days.