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Gold prices remained steady on Thursday, and have held ground so far this month, despite bleak hopes for swift and deeper rate cuts in the United States as traders await a key U.S. inflation reading due later in the day.

Spot gold was steady at $2,035.78 per ounce, as of 0419 GMT. U.S. gold futures edged 0.1% higher to $2,044.20.

"The personal consumption expenditures (PCE) data is significant, with an upside surprise bringing downside risk for gold ... bullion is range-trading at the moment and it's a surprise that it's holding up this well," said Kyle Rodda, a financial market analyst at Capital.com.

Gold is holding firm on a month-on-month basis despite traders trimming bets to three quarter-point rate cuts in the U.S. for 2024, from bets of five cuts a month ago. Hopes of the first cut arriving in May have receded this month, and a cut is now expected in June.

The U.S. dollar index climbed 0.6% and benchmark 10-year Treasury yields gained over 30 basis points (bps), so far in February. [USD/] [US/]

Fed officials this week said there's still some distance left to cover in achieving the 2% inflation target, but the door is opening for interest rate cuts, which could likely arrive later this year.

Lower interest rates boost the appeal of holding non-yielding bullion.

At least seven more Fed officials are due to speak on Thursday and Friday.

Data on Wednesday showed the U.S. economy grew at a solid clip in the fourth quarter amid strong consumer spending, but appeared to have lost some speed early this year.

Markets now await U.S. PCE inflation data at 1330 GMT.

Spot silver edged 0.1% higher to $22.48 per ounce, platinum climbed 0.4% to $882.24, and palladium jumped 1% to $937.56.