Gold futures struggled for direction in overnight trading as investors brace for the annual inflation report that could dictate the direction the Federal Reserve will go at the two-day monetary policy meeting. Despite a positive first half for gold prices and topping $2,000, they have failed to sustain the momentum.

July gold futures rose $2.70, or 0.14%, to $1,972.40 per ounce in overnight trading on the COMEX division of the New York Mercantile Exchange. The precious metal is up nearly 8% year-to-date.

Silver, the sister commodity to gold, firmed above $24. August silver futures picked up $0.066, or 0.27%, to $24.125 an ounce. The white metal is flat on the year.

The May consumer price index (CPI) will be published on Tuesday. Forecasts from economists suggest that the annual inflation rate will ease to 4.1% and rise just 0.2% month-over-month. The core inflation rate, which removes the volatile energy and food industries from the measurement, is expected to slip to just 5.3% and the core CPI to rise at a tepid pace of 0.4%.

On Wednesday, the Fed will complete its two-day Federal Open Market Committee (FOMC) policy meeting. According to the CME FedWatch Tool, the futures market is pricing in a rate pause, which would be bullish for non-yielding bullion since interest rate movements can impact the opportunity cost of holding metal commodities.

In addition, retail sales, business and consumer sentiment, and manufacturing data will be released this week.

Consumers lowered their inflation expectations for the upcoming year. The New York Fed Bank’s Survey of Consumer Expectations revealed that the one-year-ahead inflation expectations were lowered to 4.1%, down from 4.4%.

The US Dollar Index (DXY), which gauges the greenback against a basket of currencies, has had a mixed start to the trading week, slipping 0.05% in overnight trading to 103.60. A weaker buck is good for dollar-denominated commodities because it makes it cheaper for foreign investors to purchase.

Meanwhile, the US Treasury market was mixed, with the benchmark ten-year yield sliding 2.7 basis points to 3.738%. The one-month bill added 5.3 basis points to 5.238%, while the 30-year bond shed 2.2 basis points to 4.052%.

In other metal markets, July copper futures were unchanged at $3.753 per pound. July platinum futures rose $2.10, or 0.21%, to $997.40 an ounce. July palladium futures jumped $8.40, or 0.63%, to $1,349.50 per ounce.