Gold is near a two-month peak, supported by growing hopes for a US interest rate cut in June

On Monday, March 4, gold prices remained near their highest levels in two months, buoyed by disappointing economic indicators from the United States last week, which raised expectations of a potential interest rate cut by the US Federal Reserve in June.

At 06:30 GMT, spot gold edged down 0.1 percent to $2,081.34 per ounce, staying close to the $2,088.19 level reached on Friday, marking its highest point since December 28.

Meanwhile, US gold futures dipped 0.3% to $2,090.10.

Gold saw an increase of approximately $50 over the past week, with all gains concentrated in the final two days, driven by lackluster data on manufacturing and construction spending in the US, coupled with subdued inflation pressures according to the Federal Reserve’s preferred gauge.

Traders have notably elevated their expectations for a rate cut in June, with the likelihood now standing at 74% according to the London Stock Exchange Group’s interest rate movement probabilities tool, compared to about 65% the previous Monday.

The upcoming highlight on the US economic calendar is the February employment report scheduled for release on Friday.

In other metal markets, spot platinum prices dipped 0.6% to $881.22 per ounce, while palladium held steady at $955.71. Both metals have witnessed declines of more than 10% since the beginning of the year.

Platinum mining firms in South Africa are grappling with a crisis amid the slump in prices of the metal, which is extensively used in the automotive industry.

Silver also retreated in spot trading, declining 0.6% to $23.01 per ounce.