Khaberni - Gold prices edged slightly higher on Monday with the declining dollar, but the gains were limited due to the sharp increase in energy prices that exacerbated inflation concerns and further reduced expectations for the Federal Reserve (the US central bank) to cut interest rates this year.
The spot gold price increased by 0.3% to $4505.86 per troy ounce "ounce".
US futures for April delivery of gold rose by 0.3% to $4535.80. The US dollar weakened, making commodities priced in the US currency more accessible to holders of other currencies.
Nicholas Frapel, Global Head of Institutional Markets at (ABC Refinery), said, "Last week's movements in gold prices indicated a reaction to an oversold condition, and the possibility of reversing the recent downward trend."
He added, "However, this should be confirmed through price action this week. Given the rapid flow of major news, it is easier to expect fluctuations."
The price of Brent crude oil rose to more than $115 per barrel after Yemen's Houthis launched attacks on Israel at the beginning of the week, which led to an expansion of the ongoing war and increased inflation problems. The contract rose by 60% so far in March, marking a record monthly increase.
Traders see little chance of the US cutting interest rates this year, as rising energy prices threaten to fuel inflation on a broader scale and limit the scope of monetary easing. This compares to expectations of two rate cuts before the conflict began.
