March 13 Reuters Gold prices steadied on Wednesday, after posting their biggest drop in a month in the previous session, as sticky U.S. inflation raised concerns that the Federal Reserve might delay going for an interest rate cut beyond June.

Spot gold edged 0.1 up to 2,158.70 per ounce, as of 0759 GMT. U.S. gold futures fell 0.1 to 2,164.80.

Gold39;s latest price drop comes as everything falls back to the inflation data, that feeds through into U.S. Fed39;s decision making, said Michael Langford, chief investment officer at Scorpion Minerals Ltd.

Langford expects a healthy correction of up to about 10 in gold prices from here.

Bullion fell 1.1 on Tuesday, after data showed U.S. consumer prices increased solidly in February, above forecasts and suggesting some stickiness in inflation. This was gold39;s worst singleday decline since Feb. 13, when data showed consumer prices also increased more than expected in January.

Traders slightly lowered their hopes for a June rate cut, pricing in a 67 chance, according to LSEG39;s interest rate probability app, down from 72 on Tuesday before the data.

There is an excess amount of money in the system and there had been a flow of funds into commodities, keeping base metals as well as gold supported so far, Langford said.

The U.S. inflation reading pushed U.S. Treasury yields and the dollar higher. The 10year Treasury yield got an extra lift after weak demand at an auction of 39 billion of the benchmark note.

Meanwhile, markets…