Gold snaps fresh record high for 10th time this year

Gold prices trimmed their gains during the first trading session of the month today, April 1, following the release of economic data that aggravated worries that the Federal Reserve will not ease monetary policy in the near term.

Bullion for June delivery surged 0.85%, or $18.70, to finish at $2,257.10 per ounce, marking the 10th record high for the most active contracts this year, after touching $2,286.40 in early trading.

This came despite the US dollar index, which gauges the greenback's strength against a basket of six currencies, climbing by 0.40% to 104.98 points at 08:15 pm Makkah time, after hitting 105.08 points during the session.

The chances for the Fed to cut interest rates by 25 basis points (bps) at the forthcoming June meeting, as per the CME FedWatch Tool, decreased to 56.9% from 63.7% a week ago. Investors, however, are now pricing in a 52.2% possibility that the US central bank would ease monetary policy at the July meeting, down from 48.3% previously.

Elsewhere, an S&P Global survey showed the US factory output recorded a solid and accelerated rise in production during March, with the growth rate being the sharpest in 22 months, as manufacturers generally signaled improved demand and cash flows.