Gold prices rose slightly in Asian trade on Monday, recouping some of last week’s losses as traders remained cautious towards metal markets ahead of a key U.S. inflation reading this week.

Broader trading volumes were also subdued on account of market holidays in the UK and the U.S., while anticipation of more cues on U.S. interest rates also deterred big bets. 

Among industrial metals, copper prices also rose, recovering after a tumble from record highs last week.

Spot gold rose 0.4% to $2,343.23 an ounce, while gold futures expiring in June rose 0.4% to $2,344.10 an ounce by 00:33 ET (04:33 GMT). Spot prices were also nursing a tumble from record highs.

PCE test looms as waning rate cut bets batter gold

Focus this week was squarely on PCE price index data- the Federal Reserve’s preferred inflation gauge. The reading is due on Friday.

The data comes after a string of warnings from Fed officials, on sticky inflation, saw traders largely price out expectations for rate cuts by the central bank this year. Traders are now pricing in a greater probability that the Fed will keep rates unchanged in September, which was initially pegged as the most likely time for a rate cut, according to the CME Fedwatch tool.

This notion pressured gold and broader metal prices in recent weeks, with traders growing more biased towards the dollar and Treasuries. 

Waning safe-haven demand for gold also weighed on the yellow metal. 

Other precious metals rose on Monday, also recovering from last week’s losses. Platinum futures rose 1.2% to $1,048.70 an ounce, while silver futures rose 1.7% to $31.023 an ounce.