Gold steadied after a weekly drop as traders looked ahead to a US Federal Reserve meeting midweek at which policymakers are expected to reaffirm their stance for higher-for-longer interest rates.
Bullion traded near $2,335 an ounce after losing more than 2% last week. The US central bank’s preferred measure of inflation rose at a brisk pace in March, according to data Friday. Swaps traders now see only one Fed reduction this year, well below the roughly six quarter-point cuts seen at the start of the year. Higher rates are typically negative for gold as it doesn’t pay interest.