Gold keeps flat with US monetary prospects in focus

Gold prices held ground in early trading today, May 9, as the US dollar also steadied as investors assessed prospects for monetary policy in the US.

Bullion for June delivery kept flat at $2,034.50 an ounce at 09:11 am Makkah time.

Silver futures for July delivery also stabilized at $25.84 per ounce.

Further, the US dollar index, which gauges the greenback's strength against a basket of six currencies, held firm at 101.41 points, after its decline on May 8 contributed to the rally of gold prices.

This week, markets are awaiting the release of data on the US Consumer Price Index (CPI), which is a major driver of the Federal Reserve's decisions. Expectations suggest the index will remain at 5%.

While gold is hailed as a hedge against inflation, the yellow metal has recently gained momentum amid expectations of a rate hike next June.

Bullion has also benefited from the recent banking spillovers in the US, thanks to its safe-haven status.