Gold steadied before a Federal Reserve meeting this week at which policymakers are expected to pause interest-rate hikes to take stock of economic headwinds and banking strains.

Bullion is little changed from Thursday, when a surge in US unemployment claims curbed bets on another rate increase, pushing gold prices up. But there's likely to be a strong indication from the June 13-14 meeting that the Fed is prepared to keep tightening policy if needed.

The metal has traded around $1,950 an ounce this month as investors await more decisive signals on the outlook for monetary policy. Lower interest rates over the long term typically benefit non-yielding gold.

The US consumer price index print for May, due for release Tuesday, is expected to show inflation easing from a year earlier for an 11th straight month. The pace of price gains would still remain far above the Fed's target, which has kept hopes for rate cuts later this year contained.

Spot gold traded little changed at $1,962 an ounce as of 2:04 p.m. in London, after rising 0.7% last week. The Bloomberg Dollar Spot Index slipped 0.1%. Silver and platinum declined, while palladium edged up 0.2%.

Source: Bloomberg