Gold touches highest level in two months.. and this is what moves prices up

Gold prices settled near a two-month high during trading on Monday, after the release of economic data related to the United States economy last week, as this data strengthened the chances of the Federal Reserve (the US central bank) cutting interest rates in June.

The main drivers for gold are what happens on the interest rates front - and we saw a move higher in prices on Friday because a series of US macroeconomic data prompted the Federal Reserve to cut rates sooner than expected, said Edward Meir, analyst at Marks.

Gold prices rose about $50 last week on the back of easing price pressures according to the Federal Reserve's preferred inflation gauge.

The University of Michigan data revealed that the consumer confidence index fell by 2.7% on a monthly basis to 76.9 points in the revised reading for February, compared to 79 points in January, and compared to the initial reading of 79.6 points.

The US interest rate tracking tool available on the Investing Saudi Arabia website showed that market expectations for the Federal Reserve to cut interest rates during its June meeting rose to 51.1%. Lower interest rates enhance the appeal of the yellow metal, which does not generate a return.

Meanwhile, markets are awaiting the US employment report for February, due on Friday.

Gold at settlement

Gold futures extended gains in the first trading session of March on Friday, posting gains for the second week in a row, as markets were optimistic about a slowdown in the Federal Reserve's preferred inflation gauge in January.

Gold futures for April delivery rose 2%, or $41, to $2,095.7 an ounce, at the close of trading on Friday, a record high, as the yellow metal achieved weekly gains of 2.25%.

Gold and dollar now

Gold futures are now down 0.1% at $2,094 an ounce.

Spot gold futures rose 0.14% to $2,086 an ounce, the same level seen on Friday when the contract hit its highest level since December 28.

On the other hand, the US dollar index settled at 103.797 points.

Other minerals

Spot platinum fell 0.7 percent to $884.35 an ounce, while palladium rose 0.1 percent to $956.53. Both metals have fallen more than 10 percent so far this year. South African platinum miners are facing a crisis as prices slump.

Meanwhile, spot silver fell 0.4 percent to $23.06.