Gold near highest since Dec. 28, prices rose 50 last week
Traders see 74 chance of June U.S. rate cut
Platinum mining cos in South Africa in crisis on lower metal prices

March 4 Reuters Gold prices lingered close to a twomonth high on Monday, after softer U.S. economic readings last week cemented prospects of an interest rate cut in June by the Federal Reserve.

Spot gold edged 0.1 lower to 2,081.34 per ounce, as of 0630 GMT, but hovered near 2088.19, a level seen on Friday when the contract hit its highest since Dec. 28. U.S. gold futures fell 0.3 to 2,090.10.

The key drivers for gold is what39;s going to happen on the interest rate front and we saw a move higher in gold on Friday because a series of macro releases out of the U.S. moved the narrative towards the Fed possibly decreasing rates sooner than expected, Marex analyst Edward Meir said.

Gold prices rose about 50 last week, with absolutely all of the gains coming on the last two days on the back of poor U.S. manufacturing and construction spending data and easing price pressures, according to the Fed39;s preferred inflation gauge.

The rally was also possibly on account of shortcovering as a jump this big in just a short period suggests that some of the shorts were caught offguard, said Meir.

Traders have raised their hopes for a June rate cut, and are now seeing a 74 chance, compared with about 65 chance last Monday, according to LSEG39;s interest rate probability app.

Lower interest rates boost the…