Gold prices steadied just below record highs in Asian trade on Monday, with focus turning largely to upcoming U.S. inflation data for more cues on when the Federal Reserve will begin cutting interest rates.\u00a0Expectations of rate cuts saw bullion prices rise sharply to record highs last week, especially as Fed Chair Jerome Powell said that inflation was close to reaching levels the Fed was comfortable with. Middling labor market data, which indicated some cooling in U.S. employment, also aided bullion prices, as did weakness in the dollar and Treasury yields.<\/p>\n\n\n\n
Focus was now squarely on U.S. consumer price index data due on Tuesday, for more cues on interest rates.\u00a0The reading is expected to show some cooling inflation through February, although inflation is still expected to remain well above the Fed\u2019s 2% annual target. U.S. inflation will be closely watched this week, especially after Powell and a string of Fed officials signaled that anxiety over sticky inflation was the central bank\u2019s biggest consideration in lower interest rates.\u00a0The prospect of lower rates was the biggest boost to gold prices over the past two weeks, especially as labor data on Friday also showed some cooling in employment.<\/p>\n\n\n\n