Gold Prices Rise But Pinned Below Record Highs as Dollar Strength Persists

SEATTLE (Scrap Monster): Gold prices advanced in Asian trade on Monday, but remained well below recent record highs as persistent strength in the dollar weighed heavily on metal markets.

Anticipation of more cues on U.S. inflation and interest rates also kept investors heavily biased towards the dollar, although metal markets still saw some buying after steep losses on Friday.

Spot gold rose 0.2% to $2,169.77 an ounce, while gold futures expiring in April rose 0.5% to $2,170.55 an ounce by 01:13 ET (05:13 GMT). 

Bullion prices were trading well below record highs hit last week, where signals on interest rate cuts from the Federal Reserve spurred strong gains in the yellow metal.

But gold fell sharply from record highs towards the end of the week, as dovish signals from other central banks saw investors pivot largely into the dollar as the only high-yielding, low-risk currency.

The dollar index rose 0.4% on Monday to a one-month high. Strength in the dollar was also driven by anticipation of PCE price index data- the Fed’s preferred inflation gauge- due later this week, as well as comments from a string of Fed officials through the week.

Other precious metals were a mixed bag on Monday following steep declines in the prior session. Platinum futures rose 0.6% to $913.40 an ounce, while silver futures fell 0.1% to $24.812 an ounce.

Courtesy: www.ocregister.com