Gold climbs back to about £3,100 an ounce as buyers wait for Tuesday's US inflation data

Gold started the week firmer, moving back above $4,100 a troy ounce on Monday, according to FXStreet. On our approximate conversion that is about £3,100 an ounce, or roughly £99.70 a gram, before any dealer costs. It follows Friday's dip, when a strong US jobs report pulled the price lower.

FXStreet says the lift came from a softer US dollar and lower oil prices, helped by easing US-Iran tensions. Cheaper oil can ease inflation worries, which in turn reduces pressure on the US Federal Reserve to keep raising interest rates. Gold pays no interest, so it tends to do better when rate expectations cool.

That relief may be short-lived. FXStreet notes that markets still put the chance of a December rate rise at about 78 per cent. The key test is US consumer price inflation data on Tuesday. Forecasters expect monthly rises of about 0.3 per cent for headline inflation and 0.2 per cent for core. A hotter reading could strengthen the case for a hike and weigh on gold, while a softer one could help it hold its gains.

Silver also edged up to about $52.43 an ounce, roughly £39.70, leaving the gold-silver ratio near 78.

For UK buyers, investment gold coins and bars are free of VAT, so the real price is spot plus dealer premium plus delivery. Compare that all-in total rather than reacting to one day's move. This is market information, not financial advice.