Gold prices made gains on Monday but remained significantly lower than their recent record highs due to the strong performance of the U.S. dollar, which had a negative impact on the metal markets. Investors were primarily focused on the dollar due to expectations regarding U.S. inflation and interest rates. Despite the losses experienced on Friday, there was still some buying activity in the metal markets. At 01:13 ET (05:13 GMT), spot gold increased by 0.2 percent to reach $2,169.77 per ounce, while gold futures expiring in April rose by 0.5 percent to $2,170.55 per ounce.
On Monday, March 25, the price of 24-karat gold in Saudi Arabia reached SAR3,042. In addition, the selling price of 10 grams of 24K gold in the Kingdom is SAR2,611, while the price per ounce of gold is SAR8,121.
Read more: Saudi gold market faces volatility as U.S. dollar gains momentum
Gold retreats from record highs driven by rate cut expectations
The price of gold declined from its record highs last week, which were driven by indications of interest rate cuts from the U.S. Federal Reserve and resulted in substantial gains for the yellow metal. However, towards the end of the week, gold experienced a significant drop as other central banks adopted a dovish stance, causing investors to predominantly shift towards the dollar as a high-yielding and low-risk currency.
The dollar index rose by 0.4 percent on Monday, reaching a one-month high. The strength of the dollar was also influenced by anticipation of the release of the PCE price index data, which is the Fed’s preferred inflation indicator, later in the week, as well as comments from various Fed officials throughout the week.
In contrast, other precious metals displayed mixed performance on Monday following steep declines in the previous session. Platinum futures increased by 0.6 percent to $913.40 per ounce, while silver futures fell slightly by 0.1 percent to $24.812 per ounce.
Copper rebounds, yet 11-month highs prove elusive
Copper prices rebounded significantly on Monday after experiencing notable losses in the previous session. However, these prices remained well below the 11-month highs reached last week. On the London Metal Exchange, three-month copper futures rose by 0.6 percent to $8,911.0 per ton, while one-month U.S. copper futures increased by 0.8 percent to $4.0315 per pound.
The decline in copper prices from their 11-month highs last week was a result of data released on Friday, which indicated that global copper supplies might not be as constrained as initially expected. The recent surge in copper prices was primarily driven by expectations of tighter supplies, as major Chinese refiners announced plans to reduce production. However, Chinese data released on Friday revealed that copper inventories in the country had reached four-year highs in recent months, indicating that supplies in the world’s largest copper importer remained robust.
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