BENGALURU- Gold prices on Monday drifted higher from a two-week low hit in the previous session as traders gauged fading hopes of US interest rate cuts ahead of a key inflation report due later this week.
Spot gold was up 0.5 percent at $2,346.31 per ounce, having touched its lowest since May 9 at $2,325.19 on Friday. US gold futures rose 0.6 percent to $2,347.60.
Bullion hit a record high of $2,449.89 earlier last week, but has shed more than $100 since then.
“I suspect gold can manage a small bounce from current levels before retesting the $2,280-$2,300 zone, which could see losses extended if US data continues to outperform,” said City Index senior analyst Matt Simpson.
The core personal consumption expenditures price index (PCE), the preferred inflation measure for the US Federal Reserve, is due on Friday.
Bullion is known as an inflation hedge, but higher rates increase the opportunity cost of holding non-yielding gold.
