Gold hits a record high, supported by hopes of US interest rate cut in June

Gold prices 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, gold in instant transactions rose 1% to $2,255.39 per ounce. Gold recorded a record high of $2,256.09 per ounce earlier in the session.

According to Reuters, US gold futures rose 1.7% to $2,275.70 an ounce.

The dollar index fell 0.1% 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 is “consistent with what we want to see.”

Traders expect by 69% 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, silver rose in spot transactions by one percent to $25.22 per ounce. Platinum increased 0.6% to $913.85 an ounce. Palladium rose 0.3% to $1,018.22 an ounce.