Bullion lost over 1 on Friday
U.S. business activity crept up to a 26month high in June
U.S. PCE data due on Friday

June 24 Reuters Gold prices edged up on Monday as Treasury yields fell, while investors awaited key U.S. inflation data and Federal Reserve officials39; comments through the week for fresh clues on the potential timing of the central bank39;s interest rate cut.

Spot gold was up 0.2 at 2,324.25 per ounce as of 0541 GMT, after falling more than 1 on Friday. U.S. gold futures rose 0.2 to 2,336.60.

Benchmark 10year U.S. Treasury yields edged down, making nonyielding bullion more attractive for investors.

Friday night saw a pretty significant selloff due to the strong U.S. dollar. Gold has been hit by that to some extent, even though the markets are sort of edging towards two ratecuts this year, said Kyle Rodda, a financial market analyst at Capital.com.

U.S. business activity crept up to a 26month high in June amid a rebound in employment, which pushed the dollar to its highest level in near eight weeks. A stronger dollar makes bullion expensive for other currency holders.

Traders are looking out for the U.S. core personal consumption expenditures PCE price index report the Fed39;s preferred measure of inflation due on Friday to get more cues on the timing and scale of rate cuts.

If we continue to see PCE come in on the lower side, it might confirm that the Fed39;s in a position to potentially lower rates two times this year. And if we get that,…