Gold prices rose again during these moments of trading, Monday, after erasing the gains achieved during the past week on Friday, as prices rose today in conjunction with renewed bets that the US Federal Reserve will begin cutting interest rates in June, and the decline of the dollar also enhanced the attractiveness of the precious metal.

The dollar fell against its major rivals, making gold less expensive for holders of other currencies.

“The environment continues to look healthy for precious metals markets,” said Tim Waterer, chief market analyst at KCM Trade.

Waterer noted that markets are still looking for imminent rate cuts from the Federal Reserve, with June looking like the most likely time for the first rate cut.

Gold prices hit an all-time high on Thursday after Federal Reserve policymakers signaled they still expect to cut interest rates by three-quarters of a percentage point by the end of 2024 despite recent high inflation readings. Lower interest rates reduce the opportunity cost of holding bullion.

Traders now see a 74% chance that the Fed will start cutting interest rates in June, according to the US Rate Tracker tool available on Investing Saudi Arabia.

Investors are now awaiting U.S. core PCE price index data due on Friday to see if that could change the Federal Reserve's forecast for three interest rate cuts this year.

The index is expected to rise 0.3% in February, keeping the annual pace at 2.8%. Many markets will be closed on Good Friday when the PCE data is due, so the full reaction is expected next week.

Meanwhile, spot gold may break support at $2,161 per ounce and drop to the $2,147-$2,152 range, according to Reuters technical analyst Wang Tao.

Gold at settlement on Friday

Gold futures prices fell during trading on Friday, erasing the yellow metal’s gains during the week, as the dollar rose against all G10 currencies except the yen.

At settlement, gold futures for April delivery fell 1.15%, or $24.7, to $2,160 an ounce, with the yellow metal ending the week almost unchanged.

Gold and dollar now

Gold futures are now up 0.4% at $2,168 an ounce.

While spot gold contracts rose by about 0.1% to $2,167 per ounce.

On the other hand, the dollar index fell by about 0.17% to 104.005 points.

Other minerals

Spot silver fell 0.1% to $24.62 an ounce, platinum rose 0.2% to $896.23 and palladium rose 0.8% to $993.37.