Gold prices ticked higher on Monday, holding above recent multi-week lows as market participants cheered slightly easing U.S. personal consumption expenditures (PCE) price index data.
By 4:15 pm AEDT (5:10 am GMT) spot gold was up $2.48 or 0.1% to US$2,626/oz.
Last Wednesday (Thursday AEDT) the Fed's 25-basis-point reduction and the cautious note struck by its economic projections and expectations of fewer cuts in 2025 pushed gold prices to four-week lows.
However, on Friday, gold gained on a softer U.S. dollar and Treasury yields when U.S. economic data hinted at a slowdown in inflation.
Data on Friday showed monthly inflation in the U.S. slowed in November after little improvement in recent months. The PCE price index rose 0.1% last month after an unrevised 0.2% gain in October.
Meanwhile, San Francisco Federal Reserve President Mary Daly and two other Fed policymakers said on Friday that they felt the central bank would likely resume rate cuts next year but take their time given that the "recalibration phase" was over.