Investing.com– 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 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.

rose 0.4% to $2,343.23 an ounce, while 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 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 being pegged as the most likely time for a rate cut, according to the .

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

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. rose 1.2% to $1,048.70 an ounce, while rose 1.7% to $31.023 an ounce. 

Copper prices steady from last week’s plunge

rose 0.3% to $4.7720 a pound, as a speculative frenzy, which had fueled a rally to record highs in May, now wound down.

Focus was now on whether physical copper markets were as tight as initially speculated, and whether supply will remain steady in the coming months.

Markets were also awaiting more cues from top copper importer China, especially on how Beijing planned to fund and execute a swathe of recently unveiled stimulus measures.