All eyes on gold are on US CPI data
Gold prices remain flat ahead of US inflation data that will shape the Fed’s monetary policy outlook.
Gold, which lost 0.1 percent in the previous session, follows a horizontal course before the US CPI data.
Spot gold is trading just above $2,340 per ounce on the second trading day of the week.
The reading will follow a series of reports showing sticky inflation continues to challenge the central bank’s plans to cut borrowing costs this year.
Gold, which has risen 13 percent this year, hit a record high last month as gains supported by central bank purchases and rising geopolitical risks sparked safe-haven flows in the Middle East. Gold was also supported by rising demand from China.
Elsewhere, U.S. Treasury yields rose Monday after a New York Fed survey showed consumers expect prices to rise at an annual rate of 3.3 percent next year.
Markets will also examine producer price data later Tuesday to assess the impact of the categories that feed into the personal consumption expenditures price index, the Fed’s preferred inflation gauge. On the other hand, Fed Chairman Jerome Powell is also planned to give a speech.