inched higher on Monday as investors awaited U.S. inflation data, set for release this week, for insights into the Federal Reserve’s monetary policy.Spot gold was up 0.1% at $2,631.60 per ounce, as of 0009 GMT, after hitting a session high at $2,647.99.Traders are now looking forward to U.S. inflation data due on Wednesday.* According to the CME Group’s FedWatch Tool, markets currently see an 85.1% chance of a 25-basis-points rate cut this month. Lower rates decrease the opportunity cost of holding non-yielding bullion.Federal Reserve officials appeared on track to cut interest rates this month after data showed the U.S. labor market remained strong but continued to cool in November.U.S. employers added 227,000 jobs last month, a rebound from a hurricane-impacted slowdown in October, but the unemployment rate inched up to 4.2%, the Labor Department’s monthly employment report showed on Friday.