Bullion hit lowest since May 9 on Friday
Gold can manage bounce before retesting 22802300 analyst
PCE index due on Friday

May 27 Reuters Gold prices drifted higher on Monday from a twoweek low hit in the previous session as traders gauged fading hopes of U.S. interest rate cuts ahead of a key inflation report due later this week.

Spot gold was up 0.4 at 2,342.73 per ounce, as of 0543 GMT, having touched its lowest since May 9 at 2,325.19 on Friday. U.S. gold futures also climbed 0.4 to 2,343.60.

Bullion hit a record high of 2,449.89 earlier last week, but has shed more than 100 since then.

I suspect gold can manage a small bounce from current levels before retesting the 2,2802,300 zone, which could see losses extended if U.S. data continues to outperform, said City Index senior analyst Matt Simpson.

The core personal consumption expenditures price index PCE, the preferred inflation measure for the U.S. Federal Reserve, is due on Friday.

Bullion is known as an inflation hedge, but higher rates increase the opportunity cost of holding nonyielding gold.

With bullish fingers being burned at the highs and forcing some to liquidate and others to switch to the bearcamp, I doubt we39;ll see a new high soon with the Fed maintaining their 39;higherforlonger39; narrative with interest rates, City Index39;s Simpson said.

Minutes from the Federal Reserve39;s meeting published last week showed the central bank39;s path to 2 inflation could take longer than expected….