Gold prices held steady on Thursday amid geopolitical and economic uncertainties with potential gains being tempered by hot US inflation data, dampening expectations of the U.S. Federal Reserve starting the rate-cutting cycle in June.

Spot gold was little changed at $2,330.92 per ounce, as of 0956 GMT. US gold futures was flat at $2,348.00. “I would have expected gold to trade lower after US inflation surprised on the positive side, but (real) interest rates have been a bad driver for gold lately. It looks like every small setback is used by some investor to allocate more to gold, driven by fear factors,” said UBS analyst Giovanni Staunovo.

“For the next leg higher (in prices), we still need to see a return of gold exchange-traded-fund (ETF) demand and that requires the Fed indicating a rate cut. So, what we need to see is weaker US economic data.”

Data on Wednesday showed US consumer prices increased more than expected in March. Fed officials raised concerns last month that progress on inflation might have stalled, making a longer period of tight monetary policy necessary, according to the minutes of the March policy meeting.

Higher interest rates reduce the appeal of holding non-yielding gold.

Reserve buying from China is likely to remain a source of support for bullion, said Ilya Spivak, head of global macro at Tastylive.

Gold prices had hit an all-time high on Tuesday for an eighth straight session.