The search for balance in gold
Gold prices are trading sideways as the US Federal Reserve looks for more clues on inflation ahead of its next interest rate decision.
Gold is trading sideways on the first trading day of the week as the Fed needs more evidence that inflation is cooling before it moves to cut rates.
Spot gold is at $2,325 an ounce after falling 0.3 percent last week.
Gold has been trading within a narrow band in recent weeks after data last week showed a slowdown in the Fed’s preferred measure of underlying inflation.
As investors await more data from U.S. policymakers on the path of interest rates, all eyes are on the next meeting on June 11 and 12. Fed officials may keep borrowing costs elevated for longer until there is more clarity on whether price pressures are making a sustained move toward the central bank’s 2 percent target. Based on pricing in futures contracts, swap markets are likely to see a rate cut by the end of the year.