Gold prices were steady on Monday as a retreat in U.S. inflation data boosted expectations that the Federal Reserve will start cutting interest rates this year. Spot gold rose 0.1% to $2,327.12 an ounce, up more than 4% in the second quarter. U.S. personal consumption expenditures grew 2.6%, slowing from 2.7% in April. IG market strategist Yeap Jun Rong said that if gold prices fail to hold the $2,280 mark, it could pave the way for a drop to the $2,200 mark. ANZ Bank said in a quarterly report that uncertainties related to inflation, macroeconomic growth, the U.S. election and geopolitics should continue to support safe-haven demand for gold. Emerging market central banks are expected to continue to diversify their foreign exchange reserves and increase their holdings of gold.
