Gold keeps gains ahead of US inflation data

Gold maintained Monday’s gains as investors awaited key US inflation data to gauge the timing of potential interest rate cuts by the Federal Reserve, Bloomberg reported on Tuesday.

The core personal consumption expenditures index, due on Good Friday, is expected to show high inflation in February, potentially impacting the Fed’s plans for rate cuts.

Swaps markets reduced bets on a June rate cut to 65 per cent from 69 per cent last week, following comments from Fed Bank of Atlanta President Raphael Bostic.

Gold, near all-time highs, is benefiting from expectations of monetary easing. A weaker US dollar also supported gold, with spot gold at $2,172.97 an ounce. Silver, platinum, and palladium prices were relatively stable.