Gold rises after data suggests U.S. inflation is contained around the Federal Reserve's target, giving the central bank little urgency to raise interest rates soon as it signals a more cautious approach in 2019.
Spot gold added 0.3% at $1,293.82/oz at 8:57am in London; rose 0.3% last week to post 4th weekly gain.
Adding to the bullish outlook is the steady increase of holdings in bullion-backed exchange-traded funds, signaling investor interest. The metal's also on the verge of a golden cross -- where the 50-day moving average climbs above the 200-day moving average -- a pattern considered bullish by some traders.
A key measure of U.S. inflation was little changed in December while falling energy prices dragged down the broader gauge, according to data on Friday. Last week, Fed Chairman Jerome Powell said the bank can be patient before adjusting rates again.
Economists put the risk of a U.S. recession at the highest in more than six years amid mounting dangers from financial markets, a trade war with China and the federal-government shutdown.