(Bloomberg) -- The price of gold fluctuated between gains and losses after US inflation data came in lower then expected, potentially supporting the case for rate cuts by the Federal Reserve.

Bullion initially pared losses after US Producer Price Index figures fell short of economists’ expectations, with the precious metal being little changed on the day. Market attention will now turn to Consumer Price Index data due Wednesday.

While a different set of figures — the core personal consumption expenditures price index — is the Fed’s preferred measure of underlying US inflation, the PPI and CPI readings still provide clues on the path forward for widely expected interest rate cuts by the central bank. Lower rates are traditionally seen as bullish for non-interest bearing gold.

“Gold’s focus continues to be on the scope and timing of the Fed’s likely move to cut rates,” said Ewa Manthey, a commodities strategist at ING Bank NV. “The US presidential election in November — and the long-awaited US Fed rate cut — will continue to add to gold’s upward momentum through to the end of the year.”

Gold has gained about 20% this year, benefiting from mounting optimism on rate cuts and large purchases by central banks. As a safe-haven asset, it’s also been supported by geopolitical risks, including conflicts in Ukraine and the Middle East.

“For the longer-term, gold’s tailwinds still outrun any headwinds,” said Rhona O’Connell, an analyst at Stonex Financial Ltd.

Spot gold was $2,471.73 an ounce at 3:02 p.m. in London. The Bloomberg Dollar Spot Index declined 0.2%, while US 10-year Treasury yields edged down.

Palladium rose, while platinum and silver dropped.