Gold prices log fresh record close ahead of Powell's Congress testimony

Gold prices consolidated their gains at settlement today, March 5, as markets awaited Federal Reserve Chairman Jerome Powell's testimony before Congress on monetary policy on Wednesday and Thursday.

Bullion for April delivery climbed by 0.75%, or $15.60, to end at $2,141.09 per ounce, with the most active contract hitting a record close for the third straight session, after touching $2,150.50 an ounce in early trading.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, stabilized at 103.79 points at 09:37 pm Makkah time.

“Geopolitical risks emanating from the Red Sea and a year with a dense election calendar globally will likely see continued strength in retail demand for gold,” Nitesh Shah, commodity strategist at WisdomTree, was quoted as saying by Reuters.

The CME FedWatch Tool showed that market forecasts for a 25-basis-point rate cut by the Fed during the June meeting rose to 55.1%, compared to 40% a month ago, with a similar reduction likely in the coming September, November and December.