Gold advanced after a surprise slowdown in US inflation revived expectations for Federal Reserve rate cuts this year.

Bullion traded around $2700 an ounce — the highest in a month — after the consumer price index, which excludes food and energy costs – rose 0.2% following four months of 0.3% gains. That signaled US officials may have room to ease policy sooner than previously thought.

Treasury yields and the dollar fell after the print, boosting bullion’s allure as it does not generate interest and becomes cheaper for most buyers when the greenback weakens. Swap traders are now back to fully pricing in a rate cut by July — a shift after Friday’s hot jobs data saw the market push back expectations for easing to either September or October.

A clutch of Fed officials on Wednesday expressed confidence that price pressures would continue to ebb, but some warned that the battle against inflation isn’t finished yet. Easing monetary policy was a major catalyst for the precious metal’s rally to a record last year.

Spot gold rose 0.1% at $2,699.66 an ounce as of 8:34 a.m. in London, following a 0.7% gain in the previous session. Silver and platinum edged higher, while palladium declined.