Gold trades at $4,185 on softer dollar, cheaper oil

Spot gold was down 0.2% at $4,185.06 an ounce at 10:35 am PST, according to Mettis Global, helped by a softer US dollar and lower crude prices. Traders were getting set for this week's American inflation figures, which may influence the Federal Reserve's coming interest rate move. Higher borrowing costs typically weigh on bullion, since the metal pays no yield, though it is often bought as a hedge against rising prices.

Crude prices eased after US President Donald Trump announced on Sunday a truce on energy between Russia and Ukraine, effective immediately. That raised expectations of increased Russian supply, CNBC reported. Kyiv has not yet received the details of the arrangement, according to Ukrainian President Volodymyr Zelenskiy.

Next in focus is US CPI data due Wednesday, with PPI and retail sales figures arriving Thursday. CME's FedWatch tool shows a 17% chance of a rate increase in October, climbing to 86% by December. Consumer confidence in the US fell further in early October, as higher living costs linked to the Middle East conflict weighed on household views of the economy.