Gold closes in green for 1st time in 5 sessions

Gold prices strengthened their gains today, May 28, after the yellow metal ended its series of weekly gains, recording losses exceeding 3%.

Bullion for June delivery increased 0.95%, or $22, to finish at $2,356.5 an ounce after touching $2,365.50/ounce in early trading, marking the first hike for the yellow metal since the May 20 session.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, slid 0.10% to 104.49 points at 08:41 pm Makkah time, after hitting 104.34 points during the same session.

"Gold prices are likely to remain fairly supported by buying-on-dips demand and central bank diversification," said Amelia Xiao Fu, head of commodity market strategy at Bank of China International.

The CME FedWatch Tool showed that chances for the Federal Reserve to fix borrowing costs in the June and July meetings stood at 99.1% and 88.9%, respectively. Investors’ preference for cutting interest rates by 25 basis points in the December meeting rising to 42.7%, from 33.3% a week ago.