Gold starts week flat, eyes on US inflation data

Gold prices kicked off the week unchanged in Asia, as investors await key US inflation data and potentially hawkish Fed commentary.

The precious metal, stuck in a $2,000-$2,050 range since January, showed little movement on Monday. This follows recent hawkish statements from Fed officials who emphasised keeping interest rates higher for longer to combat inflation.

Sticky US inflation data and a strong job market have further supported this stance, leading investors to price out rate cuts in May and June.

Spot gold (XAU/USD) hovered around $2,034.60 per ounce at 7:50 GMT Monday.

Focus now turns to the US PCE price index, a key inflation gauge for the Fed, due later this week. This data, alongside comments from Fed officials, is expected to shed light on the future trajectory of interest rates and potentially impact gold prices.