Gold nears record high

Gold is hovering near a record high ahead of U.S. inflation data. Gold held on to Monday’s gains as investors turned cautious ahead of U.S. inflation data, which could give investors a firmer view on when the Fed will start cutting interest rates. The headline personal consumption expenditures index due on Friday is expected to show that inflation likely remained uncomfortably high in February. That could stymie U.S. policymakers’ plans for three rate cuts this year. Swap markets cut bets on a June rate cut to 65% from 69% late last week after Fed Bank of Atlanta President Raphael Bostic reiterated on Monday that he expects just one rate cut this year. Still, gold remained near all-time highs as momentum around the central bank’s long-awaited quantitative easing move picked up. Bullion got some support from a weaker U.S. dollar, which snapped a two-day rally after the People’s Bank of China set a stronger-than-expected reference rate for the yuan on Monday. Spot gold was steady at $2,172.97 an ounce as of 8:15 a.m. Singapore time after gaining 0.5 percent on Monday. The Bloomberg Dollar Spot Index was flat. Silver and platinum were little changed, while palladium rose slightly.