U.S. PCE data due on Friday
Traders price in about 62 chance of ratecut by November Vietnam39;s central bank to stop domestic gold auctions

May 28 Reuters Gold prices held steady on Tuesday as the dollar eased, while investors looked forward to key U.S. inflation data that could offer clues on how soon the Federal Reserve can cut interest rates.

Spot gold was flat at 2,350.85 per ounce, as of 0350 GMT, after rising about 1 in the previous session.

U.S. gold futures rose 0.8 to 2,352.00.

A very strong dollar picture supported by a change in the U.S. monetary policy stance where the Fed starts looking for evidence to kick start interest rate hikes instead of easing could be a major risk as we could see a further corrective move in spot gold, said Kelvin Wong, a senior market analyst for Asia Pacific at OANDA.

However, in the short term, spot gold is still more skewed towards the positive side rather than the negative side and 2,310 is a key shortterm support for this week, Wong added.

The core personal consumption expenditures price index PCE, the Fed39;s preferred inflation measure, is due on Friday.

Fed meeting minutes released last week showed that the policy response, for now, would involve maintaining the benchmark policy rate at its current level but also reflected discussions of possible further hikes.

Traders39; bets indicated rising scepticism that the U.S. central bank will lower rates more than once in 2024, currently pricing in about a 62 chance of a…