(Reuters) – It touched a record high level on Monday after data showed that US inflation moderated in February, strengthening bets that the Federal Reserve (US central bank) will cut interest rates in June.
By 0103 GMT, it had risen 1 percent to $2,255.39 an ounce. Gold hit a record high of $2,256.09 an ounce earlier in the session.
US gold futures rose 1.7 percent to $2,275.70 an ounce.
It fell 0.1 percent against a basket of competing currencies, making gold more attractive to holders of other currencies.
Federal Reserve Chairman Jerome Powell said on Friday that the latest US inflation data was “consistent with what we want to see.”
Traders expect by 69 percent that the US Federal Reserve will cut interest rates in June, according to the FeedWatch tool of the CME Group. Lower interest rates enhance the opportunity to hold gold.
As for other precious metals, it rose in spot transactions by one percent to $25.22 per ounce. Platinum increased 0.6 percent to $913.85 an ounce. It rose 0.3 percent to $1,018.22 an ounce.
(Prepared by Marwa Salam for the Arabic Bulletin)
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