Gold treads water ahead of US inflation data

Gold prices were flat on Friday as investors awaited the crucial inflation report which can significantly influence the outlook on US interest rates, although bullion was heading for its fourth straight monthly gain, reports Reuters.
Spot gold was unchanged at $2,343.02 per ounce as of 0929 GMT. Bullion prices are up 0.4 per cent so far this week and 2.5 per cent so far in the month.
U.S. gold futures was flat at $2,340.30.
The dollar edged up against a basket of currencies to hit a nearly two-week low, making gold more expensive for other currency holders.
"Gold has ignored all normal economic indicators. It's dancing to a different beat or rhythm. The reason for that is being driven by speculative flows out of China," said independent analyst Ross Norman.
Investors' focus now shifts to the Personal Consumption Expenditures (PCE) price index, the Fed's preferred measure of inflation, due at 1230 GMT.
The U.S. core Personal Consumption Expenditures (PCE) index for April is forecasted to increase by 0.3 per cent month-on-month and 2.8 per cent year-on-year.
Dallas Federal Reserve Bank President Lorie Logan said on Thursday she believes inflation is still heading to the Fed's 2% target. A hawkish comment from the fed official heightened expectations for future rate cuts.
While gold is often considered a safeguard against inflation, higher rates increase the opportunity cost of holding the non-yielding asset.
Spot silver was steady at $31.20 per ounce but was set for its biggest monthly gain since July 2020.
Platinum was up 0.2 per cent at $1,025.90 and palladium down 0.1 per cent at $946.75.