Spot gold was up 0.9% to $2,210.80 per ounce by 9:05 a.m. EDT, on track for a monthly gain of over 8% and a second straight quarterly rise. US gold futures edged 1.0% higher at $2,236.20 per ounce.

Gold hit a record high this time last week after the Federal Reserve confirmed plans for three rate cuts in 2024.

Since then, it has held near the all-time peak as traders hunker down for more US data that could influence the central bank’s monetary strategy.

“Gold seems to be on standby after a three-day rally with investors on the sidelines ahead of key US data,” said FXTM senior research analyst Lukman Otunuga in a Reuters note.

On the radar are the weekly US initial jobless claims report due later in the day, followed by the US core personal consumption expenditure (PCE) price index report on Friday.

“More signs of cooling price pressures may reinforce expectations around the Fed cutting rates – ultimately boosting appetite for gold. However, a sticky report is likely to drag the precious metal lower,” Otunuga added.

On the flip side, Fed Governor Christopher Waller stressed that recent economic data would warrant a delay or a reduced amount of interest rate cuts.

“The market therefore seems to be underestimating the risk that US rate cuts will come later and be less substantial,” Commerzbank said in a note.

Traders are currently pricing in a 64% chance of a June cut, Reuters said, citing CME Group’s FedWatch tool.

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