BENGALURU: Gold traded flat on Monday, hitting pause after a record rally last week, as traders hunkered down for US inflation data that could provide more clarity on the Federal Reserve’s interest rate trajectory.

Spot gold was steady at $2,179.69 per ounce at 9:32 a.m. ET (1332 GMT), after hitting a record high on Friday at $2,194.99 after US labour market data boosted rate cut bets. US gold futures were also little changed at $2,186.20. The US consumer price inflation (CPI) data for February is due on Tuesday.

Gold’s current moves are just a routine pause and if the data “comes in hot, above last month’s report, then that that’s going to probably be a little troublesome to the gold market (and) might cause some near-term selling pressure”, said Jim Wyckoff, senior analyst at Kitco Metals, adding that very likely that gold will see new highs in the near term. Traders are pricing in a more than 70% chance of an interest rate cut by June, according to the CME FedWatch tool. Low interest rates help gold prices as they reduce the opportunity cost of holding zero-yield bullion.

Central bank buying has also been supportive for gold. Reflecting bullish sentiment, COMEX gold speculators raised their net long positions by 63,018 contracts to 131,060 in the week ended March 5, data on Friday showed.

“With large speculators having increased net-long exposure at their fastest weekly pace in 3.5 years last Tuesday, gold is clearly in demand and not a market to short for any length of time whilst traders expect Fed cuts,” City Index senior analyst Matt Simpson said. Spot silver rose 0.5% to $24.43, while platinum gained 2.2% to $932.80 per ounce and palladium added 1.6% to $1,035.65.