Gold prices started the week on a firm footing on Monday, supported by a retreat in the dollar, as investors awaited U.S. inflation data due this week that would indicate the Federal Reserve's next interest rate move.

FUNDAMENTALS

* Spot gold was up 0.1% at $1,919.52 per ounce by 0105 GMT, but still hovered near one-week lows hit on Sept. 6. Bullion lost 1% in the previous week. U.S. gold futures steadied at $1,943.

* The U.S. dollar and benchmark 10-year bond yields dropped 0.2%, making non-yielding bullion more attractive for overseas buyers.

* The U.S. Consumer Price Index (CPI) for August is due on Wednesday and is expected to shape the Fed's interest rate decisions this year.

* Ahead of their policy-setting meeting this month, Fed policymakers have been pretty clear about two things: They are not itching to raise interest rates, but few among them are ready to declare victory, either.

* The European Central Bank will hold interest rates steady on Sept. 14, according to a majority of economists polled by Reuters, but just under half expect one more hike this year to tame inflation.

* Bank of Japan Governor Kazuo Ueda said the central bank could end its negative interest rate policy when achievement of its 2% inflation target is in sight, the Yomiuri newspaper reported on Saturday, signalling possible interest rate hikes.

* China's consumer prices returned to positive territory in August while factory-gate price declines slowed, data showed on Saturday, as deflation pressures ease amid signs of stabilisation in the economy.

* Discounts on physical gold were highest in seven weeks in India, while premiums in China swung higher last week on some demand optimism flowing from the country's policy measures to support the economy.

* Elsewhere, spot silver rose 0.2% to $22.95 per ounce, platinum was up 0.1% at $893.04 after a 7% decline last week and palladium edged 0.1% higher to $1,199.03.

(Reporting by Swati Verma in Bengaluru; Editing by Sherry Jacob-Phillips)