Gold steadied on Tuesday below a three-month high reached in the previous session as the dollar held near multi-week lows, with investors awaiting U.S. consumer price data to gauge inflation.

Spot gold was flat at $1,836 per ounce, after hitting its highest since Feb. 11 at $1,845.06 on Monday.

Prices jumped more than 3% last week as the metal surpassed a key psychological level of $1,800 and after weaker-than-anticipated April jobs numbers in the United States. In today’s video we discuss the outlook of the gold market.

“Investor interest in bullion remains high due to inflation fears and weak US jobs data. Investors are now seeing gold as a hedge against inflation,” said Carlo Alberto De Casa, chief analyst, ActivTrades.

“Even technically, gold is in a strong positive trend. A clear surpass of $1,840 could open space for further upside towards $1,870.”

With investors closely watching for signs of higher prices, the consumer price index for April due on Wednesday will be monitored as investors gauge if the U.S. Federal Reserve will begin to alter its stance on inflation.

At a time of heavy government stimulus, gold is considered a hedge against potential inflation.

Against a basket of its major rivals, the dollar was down 0.1%, holding near a Feb. 25 low hit in the last session.

Fed officials would like to see higher inflation, more wage growth and several months of strong employment gains before they consider adjusting monetary policy, Chicago Fed Bank President Charles Evans said on Monday.

“The scope for further declines (in gold prices) may be modest,” HSBC analysts said in a note, adding that a decline in yields offers gold a chance to rally.

Palladium was up 0.6% at $2,977.64 per ounce, silver gained 0.3% to $27.40, while platinum dropped 0.2% to $1,244.25.

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