Gold prices rise but pinned below record highs as dollar strength persists

Gold prices saw an uptick in Asian trading this Monday, yet they lingered beneath their recent peak levels due to the ongoing dominance of the dollar. The strength of the dollar exerted significant pressure on metal markets, keeping gold prices subdued.

Investors remained focused on upcoming indicators regarding U.S. inflation and interest rates, which further bolstered the appeal of the dollar. Despite this prevailing sentiment, there was some buying activity in metal markets following considerable losses observed on Friday.

Spot gold recorded a modest increase of 0.2%, reaching $2,169.77 per ounce, while gold futures for April delivery rose by 0.5% to $2,170.55 per ounce.

Bullion prices, which had surged to record highs last week amid signals of potential interest rate cuts from the Federal Reserve, were now trading significantly lower. However, towards the end of the week, gold experienced a notable decline from its peak levels. This drop coincided with dovish signals from other central banks, prompting investors to shift their focus towards the dollar as a high-yielding and low-risk currency.

On Monday, the dollar index rose by 0.4% to reach a one-month high, driven by both anticipation of the PCE price index data, the Fed’s preferred inflation measure scheduled for later in the week, and comments from several Fed officials throughout the week.

In the realm of other precious metals, Monday saw a mixed performance following steep declines in the previous session. Platinum futures managed to rise by 0.6% to $913.40 per ounce, while silver futures slipped by 0.1% to $24.812 per ounce.

As for industrial metals, copper prices experienced a notable rebound on Monday after significant losses in the previous session. However, Friday’s losses kept copper prices trading well below the 11-month peaks reached last week.