Gold prices react to U.S. inflation and Fed policy decision.

Gold prices saw a minor lift as the US Labor Department reported a drop of 0.3% in the Producer Price Index (PPI) for May, which was cooler than expected. However, core inflation remained stubbornly elevated, rising 0.2% last month and in line with expectations. The latest inflation data has not impacted interest rate expectations ahead of the Federal Reserve's monetary policy decision, which will be announced later in the day. While inflation has dropped sharply from the highs seen last year, economists note it is still well above the Federal Reserve's 2% target.