Spot gold was up 0.1% at $1,781.19 per ounce by 0109 GMT. U.S. gold futures rose 0.1% to $1,780.30.
The dollar index eased 0.1% against rivals, making gold cheaper for holders of other currencies.
U.S. consumer spending paused in May, while the personal consumption expenditures price index, the Fed’s preferred inflation measure, came in below expectations.
Minneapolis Fed President Neel Kashkari said on Friday he expected recent high inflation readings would not last and Americans would return to the labour market in large numbers in the fall.
Republican Senate negotiators on an infrastructure deal were optimistic about a $1.2 trillion bipartisan bill on Sunday after President Joe Biden withdrew his threat to veto the measure unless a separate Democratic spending plan also passes Congress.
On the physical front, the gold market in top consumer China flipped into a premium last week as prices eased although activity was subdued, while buyers in India held off for a sharper dip in rates as more jewellers opened up.
Speculators cut their net long position in gold by 38,288 contracts to 76,163 in the week to June 22, data from the Commodity Futures Trading Commission showed on Friday.
Silver was steady at $26.07 per ounce, palladium rose 0.2% to $2,641.38. Platinum eased 0.1% to $1,109.64.
