Gold prices rally at settlement ahead of Fed meeting

Gold bars

Gold prices gained ground at settlement today, June 10, as investors awaited US inflation data and the Federal Reserve's decision on interest rates later this week.

Bullion for August delivery rose approximately 0.1%, or $2, to finish at $2,327 an ounce, after declining to $2,304.50 per ounce in early trading.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, increased 0.25% to 105.17 points at 08:32 pm Makkah time.

The CME FedWatch Tool showed a decline in investors' preference for a 25-basis-point interest rate cut by the US central bank to 45% from 51.3% a week ago, weighed by the latest US jobs report, which came in stronger than projected.

Markets are awaiting the release of the US Consumer Price Index report on Wednesday, on the heels of the Fed’s monetary policy decision amid expectations of keeping interest rates unchanged. All eyes are also on Fed Chairman Jerome Powell's post-policy meeting press conference and the quarterly report of policymakers.