2024.03.0518:04:00UTC+00Gold Futures Settle Higher Again

Gold prices climbed to fresh record high on Tuesday, extending recent gains, as the dollar remained subdued ahead of the Federal Reserve Chair Jerome Powell's congressional testimony this week.

The dollar index dropped to 103.58 around mid morning, and was at 103.80 a little while ago, down marginally from Monday's close. Weaker than expected ISM services PMI for February raised the possibility of a rate cut in June.

Gold futures for April ended up by $15.60 at $2,141.90 an ounce.

Silver futures for May ended down $0.007 at $23.984 an ounce, while Copper futures for May settled at $3.8470 per pound, down $0.0100.

In U.S. economic releases today, a report released by the Institute for Supply Management showed U.S. service sector growth slowed by slightly more than expected in the month of February.

The ISM said its services PMI fell to 52.6 in February after climbing to 53.4 in January. While a reading above 50 still indicates growth, economists had expected the index to show a more modest decrease to 53.0.

The Commerce Department's report showed factory orders dropped 3.6% in January after falling by a revised 0.3% in December. Economists had expected factory orders to tumble by 2.9% compared to the 0.2% uptick originally reported for the previous month.

Fed Chair Powell is due to testify before the House Financial Services Committee on Wednesday and the Senate Banking Committee on Thursday.

The Fed chief is likely to reiterate recent comments stressing the central bank needs greater confidence inflation is slowing before cutting interest rates.

Data on factory orders, private sector employment, weekly jobless claims and the U.S. trade deficit along with the Fed's Beige Book are due to be released this week.

The U.S. Labor Department's employment report is due on Friday, with employment expected to increase by 200,000 jobs in February after an increase of 353,000 jobs in January.

The European Central Bank's monetary policy announcement id due on Thursday.