Gold prices end in green on weaker US dollar

Gold bars

Gold prices strengthened gains at close today, June 24, thanks to the decline in the US dollar, as investors awaited data on the US core personal consumption expenditures price index – the Federal Reserve’s preferred inflation gauge, scheduled for release on Friday.

Bullion for August delivery nudged up by 0.55%, or $13.20, to finish at $2,344.4 an ounce.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, slid 0.2% to 105.56 points at 09:13 pm Makkah time.

In its latest report, Bank of America’s analysts predicted a potential surge in gold prices, with estimates reaching $3,000 per ounce within the next 12-18 months.

However, they acknowledged that current market flows do not necessarily support this price point, underlining that reaching $3,000/ounce hinges on increased non-commercial demand.

The CME FedWatch Tool showed an 89.7% chance for borrowing costs during the July meeting. Further, expectations for the US central bank lowering interest rates by 25 basis points at the September meeting rose to 61.1%, from 44.9% a month ago.