Gold erases early trading gains at close as focus shifts to US economic data

Gold prices erased their early trading gains today, March 26, as focus shifted to the US monetary policy prospects amid growing uncertainty about the outlook for interest rates.

Bullion for April delivery finished at $2,177.2 per ounce, after touching $2,200.6 earlier in the session.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, remained unchanged at 104.26 points at 08:37 pm Makkah time.

The Conference Board survey showed that US consumers who expect an increase in interest rates next year has risen to more than 50% for the first time since November 2023, in tandem with a decline in plans to purchase interest-rate-sensitive items such as cars and homes.

Markets are awaiting the release of the core personal consumption expenditures price (PCE) index, the Federal Reserve's preferred inflation gauge, on Friday. Forecasts suggest a hike of 0.3% on a monthly basis for the forthcoming February reading, following a 0.4% uptick in January.