Gold remained stable near $2,600 during the opening of the weekly Asian session following the hawkish stance by the Federal Reserve (Fed) which will continue to affect the yellow metal's trading.
At 9.25 am, gold prices were at $2,620, up 0.10% since it opened in early trading on Monday.
The Fed cut interest rates at the December FOMC as expected and signaled that it will slow its policy easing next year.
The tone will give an advantage to the US dollar (USD) and weaken gold due to the potential for higher real interest rates and increasing investor costs.
In addition, more 'soft' than expected US inflation data could help limit prolonged losses for the gold market.
The Personal Consumption Expenditures (PCE) Price Index rose to 2.4% annually in November from 2.3% in October last week. The reading was below the market consensus of 2.5%. Meanwhile, Core PCE rose 2.8% in November as recorded in the previous month, but below the 2.9% expected.
Meanwhile, rising gold demand in China may contribute to the stability of the yellow metal as they are the world's largest gold consumer.
Ahead of the Chinese New Year celebrations, its buying potential has jumped higher compared to the Diwali celebrations and the ongoing geopolitical tensions in the Middle East continue to support safe haven flows, especially gold.
