BENGALURU- Gold prices held steady on Monday after data showed US inflation subsided, bolstering hopes that the Federal Reserve will start cutting interest rates this year.
Spot gold rose 0.1 percent at $2,327.12 per ounce. Prices jumped more than 4 percent in the second quarter.
US gold futures eased 0.1 percent at $2,336.60.
Data showed on Friday that the personal consumption expenditures index, increased 2.6 percent after advancing 2.7 percent in April. May inflation readings were in line with economists’ expectations.
“The latest US inflation data remain fresh on investors’ mind, with the data coming in line with consensus and generally did little to sway current market rate expectations for the Fed’s easing process to kickstart in September,” said IG market strategist Yeap Jun Rong.
But, “any failure to defend the $2,280 level ahead may potentially pave the way for gold prices to head towards the $2,200 next”.
