Fed Chair Powell speech due on Tuesday
Fed minutes of June policy meeting on Wednesday

July 1 Reuters Gold prices held steady on Monday after data showed U.S. inflation subsided in May, bolstering hopes that the Federal Reserve will start cutting interest rates this year.

Spot gold was nearly unchanged at 2,325.49 per ounce, as of 0716 GMT. Prices registered a more than 4 gain in the second quarter.

U.S. gold futures eased 0.2 to 2,334.80.

Data on Friday showed that the U.S. personal consumption expenditures index increased 2.6 in the 12 months through May after advancing 2.7 in April, while inflation readings for the month were in line with economists39; expectations.

The latest U.S. inflation data remain fresh on investors39; mind, with the data coming in line with consensus and generally did little to sway current market rate expectations for the Fed39;s easing process to kickstart in September, said IG market strategist Yeap Jun Rong.

But, any failure to defend the 2,280 level ahead may potentially pave the way for gold prices to head towards the 2,200 next.

Market now expect a 64 chance of the Fed cutting interest rates in September, unchanged from before the data, as well as another cut in December.

Lower interest rates reduce the opportunity cost of holding nonyielding bullion.

Investor focus now shifts to remarks from Fed Chair Jerome Powell on Tuesday, followed by minutes from the Fed39;s latest policy meeting on Wednesday and U.S. labour market data…