Gold prices firmed on Monday, as a pullback in the dollar helped bullion recover some of its recent losses, while easing fears of a 100-basis-point rate hike by the U.S. Federal Reserve also supported bullion.

Spot gold rose 0.8% to $1,720.81 per ounce by 0926 GMT, after falling to its lowest in nearly a year last week. U.S. gold futures also gained 0.8% to $1,717.40.

The dollar index was off its near 20-year high, down 0.3%, making greenback-priced bullion less expensive for buyers holding other currencies.

“Markets are paring back the odds of a 100-basis point Fed rate hike at its July policy meeting, which is translating into some measure of relief for bullion,” said Han Tan, chief market analyst at Exinity.

U.S. consumers tempered their inflation expectations in July alongside a sharp drop in gasoline prices over the past month, a development likely to be welcomed by Federal Reserve officials worried that expectations for high inflation could become embedded and complicate their task of reining in price increases.

Fed’s aggressive inflation-fighting policy has dented bullion’s safe-haven appeal, as rising interest rates made the non-interest bearing asset seem less attractive.

“However, with a 75-basis point move now looking more likely, the U.S. dollar has weakened slightly from the record it hit last week, providing relief across equity and commodity markets,” Rupert Rowling, market analyst at Kinesis Money, said.

Fed officials signaled on Friday that they would stick to a 75-bp rate increase at their July 26-27 meeting. Focus also remains on the European Central Bank’s meeting later this week where it is expected to raise rates by 25 bps.