Gold prices were anchored near a two-month peak on Monday, following last week's tepid U.S. economic data, which solidified bets for the Federal Reserve's first interest rate cut of the year in June.

Spot gold was steady at $2,082.89 per ounce, as of 1230 GMT. U.S. gold futures fell 0.2% to $2,091.50.

Gold prices traded close to $2,088.19 an ounce, a level seen on Friday when the contract hit its highest level since Dec. 28. Bullion scaled a record peak of $2,135.40 in early December.

"Weaker-than-expected U.S. economic data last week pushed down U.S. real interest rates and this was the driver of the latest gold price rally," said UBS analyst Giovanni Staunovo.

Gold prices surged by approximately $50 over the course of last week, momentum fueled by disappointing U.S. manufacturing and construction spending figures as well as a reduction in price pressures, as indicated by the Federal Reserve's preferred inflation gauge.

Lower interest rates boost the appeal of non-yielding bullion.

"The price rally likely was driven by short-term oriented investors buying gold in anticipation that a soft landing of the U.S. economy allows the Fed to cut rates soon and offsetting weak ETF gold demand," Staunovo added.

Markets have raised their hopes for a June rate cut, pricing in a 74% chance, compared with an around 65% chance last week, according to LSEG's interest rate probability app.

The next major U.S. economic release that could move the needle on U.S. rate cut expectations will be February's employment report on Friday.

Meanwhile, London's gold price benchmark hit an all-time high of $2,083.15 per troy ounce at a morning auction on Monday, surpassing the previous record of $2,078.40 set on Dec. 28, the London Bullion Market Association (LBMA) said.

Spot platinum rose 1% to $895.80 per ounce and palladium gained 0.5% to $960.63. Spot silver fell 0.1% to $23.12.

(Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Sonia Cheema and Louise Heavens)