Gold prices are trading in today’s European session around 2250 levels.
On Monday, gold prices surged to an all-time high, buoyed by a milder U.S. inflation report that solidified expectations for the Federal Reserve to implement its first interest rate cut of the year in June. According to Investing.com's Fed Rate Monitor Tool, traders are currently estimating a 60% likelihood of rate cuts commencing in June.
The decrease in interest rates diminishes the opportunity cost of holding gold.
In March, gold experienced its most significant monthly increase in over three years, propelled by speculation of rate cuts, robust demand for safe-haven assets, and purchases by central banks.
