In European trade on Monday, gold prices continued their upward trend for the second consecutive day, rebounding from two-week lows, while the dollar weakened.
Traders are currently awaiting a series of significant US data releases later this week, along with statements from several Fed officials, to gauge the likelihood of Fed rate cuts this year.
Price
Gold prices climbed by 0.6% to $2347 per ounce, after hitting a session low of $2332. This rise follows a 0.25% increase on Friday, marking the first gain in four days after hitting two-week lows of $3325.
Last week, gold prices experienced a notable decline of 3.35%, marking the first weekly loss in three weeks and the largest since December 2023.
Despite reaching a record high of $2450 per ounce last week, prices have been pressured by diminishing expectations of Fed rate cuts, particularly after the release of the bullish Fed's May meeting minutes.
Dollar
The dollar index slipped by 0.2% on Monday for the second consecutive session against a basket of major currencies, further bolstering gold prices and other commodities.
US Rates
The probability of a Fed interest rate cut in July remains low at just 10%, with slightly higher odds for cuts in September (49%) and November (62%), according to the Fedwatch tool.
Investor expectations for a single Fed interest rate cut this year have significantly diminished.
Comments