June 3 (Reuters) - Gold prices traded flat on Monday as investors awaited multiple U.S. economic reports this week for clues on health of the economy, after a recent inflation report suggested the Federal Reserve might have room for rate cuts in 2024.
Spot gold was unchanged at $2,326.79 per ounce, as of 0914 GMT, after hitting its lowest since May 9 earlier in the session. Bullion gained 2% in May and about 13% year-to-date.
"With many important economic data being released in the U.S. this week, the gold market is moving sideways, watching out if the data confirms a soft landing of the U.S. economy or not," UBS analyst Giovanni Staunovo said.
Investors will look at the Institute of Supply Management's (ISM) nationwide PMI reading expected at 1400 GMT, Wednesday's ADP employment report and non-farm payrolls data due on Friday.
"We still expect a slowdown (in U.S. economic data) will allow the Federal Reserve to cut interest rates later this year and this should lift gold prices," Staunovo said.
Data on Friday showed that the U.S. inflation had stabilised in April, raising bets for a rate cut in September. Traders are currently pricing in about a 54% chance of a cut in September, versus about 49% before the report.
While bullion is considered an inflation hedge, higher rates increase the opportunity cost of holding the non-yielding asset.
Elsewhere, the European Central Bank is seen almost certain to trim rates by a quarter point to 3.75% on Thursday, and this could make it the first major central bank to cut rates this cycle.
Spot silver fell 0.5% to $30.21 per ounce. However, it rose 27% year-to-date.
Platinum was down 1% at $1,027.05 and palladium lost 1.2% to $902.00.
Reporting by Harshit Verma in Bengaluru; Editing by Mrigank Dhaniwala
