May 8 (Reuters) - Gold prices were flat on Monday, after slumping more than 2% in the previous session, as investors maintained a cautious stance ahead of key U.S. inflation data due this week.
FUNDAMENTALS
* Spot gold held its ground at $2,016.29 per ounce, as of 0016 GMT. U.S. gold futures were down 0.1% at $2,023.80.
* The U.S. consumer price index (CPI) data is due on Wednesday.
* Bullion prices fell over 2% on Friday after stronger-than-expected U.S. payrolls data tempered expectations of interest rate cuts from the Federal Reserve.
* Data on Friday showed that U.S. job growth accelerated in April while wage gains increased solidly, pointing to persistent labor market strength.
* U.S. Treasury Secretary Janet Yellen on Sunday issued a stark warning that a failure by Congress to act on the debt ceiling could trigger a "constitutional crisis".
* Traders will also keep a tab on the developments surrounding the U.S. banking sector.
* Economic uncertainty and lower rates boost demand for zero-yielding gold.
* Global gold demand fell in the first three months of 2023 as large purchases by central banks and Chinese consumers were offset by reduced investor buying, the World Gold Council (WGC) said on Friday.
* Physical gold dealers in major trading centre China offered discounts last week for the first time in more than a month as elevated prices kept retail buyers away, while a record surge in local rates also hammered demand in India.
* Spot silver was unchanged at $25.64 per ounce, platinum lost 0.1% to $1,058.48, while palladium gained 1% to $1,505.80.
DATA/EVENTS (GMT) 0600 Germany Industrial Output MM March 0600 Germany Industrial Production YY SA March
(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Sherry Jacob-Phillips)
