PRECIOUS-Gold near two-month peak as anticipation builds for June US rate cut
Shafaq News/ Old prices lingered close to a two-month high on Monday, after softer U.S. economic readings last week cemented prospects of an interest rate cut in June by the Federal Reserve.
Spot gold XAU= edged 0.1% lower to $2,081.11 per ounce, as of 0400 GMT, but hovered near $2088.19, a level seen on Friday when the contract hit its highest since Dec. 28. U.S. gold futures GCcv1 fell 0.3% to $2,090.00.
The rally was also possibly on account of short-covering as a jump this big in just a short period suggests that "some of the shorts were caught off-guard," said Meir.
Lower interest rates boost the appeal of non-yielding bullion.
The next major U.S. economic release will be February's employment report due on Friday.
Spot platinum XPT= fell 0.7% to $884.35 per ounce, and palladium XPD= rose 0.1% to $956.53. Both metals have fallen more than 10% so far this year.
Platinum mining companies in South Africa are caught up in a crisis as the auto-catalyst metal's prices dwindle.
Spot silver XAG= fell 0.4% to $23.06.
(REUTERS)
