02:13 PM EDT, 03/25/2024 (MT Newswires) -- Gold closed with a gain on Monday despite rising treasury yields as the market anticipates coming interest-rate cuts..

Gold for June delivery closed up US$16.60 to settle at US$2,198.20 per ounce.

The gain comes as the precious metal last week rose to a record US$2,206.50 but fell back under pressure from a rising dollar and profit taking.

However traders on Monday are looking forward to interest-rate cuts from the Federal Reserve and other central banks with inflation slowing in most markets. Lower interest rates are bullish for gold, cutting the carrying costs of holding the metal since it pays no interest. The Federal Reserve last week said it could lower rates by 75 basis points this year.

"Gold will likely benefit from interest rate cuts from the Fed. Gold, in the past, has often been seen as an attractive investment alternative to high-quality interest-bearing assets when the Fed is cutting interest rates," Mason Mendez, an investment strategy analyst with Wells Fargo Investment Institute, said in a note.

The dollar eased, with the ICE dollar index last seen down 0.2 points to 104.23.

Treasury yields are also on the rise, with the US two-year note last seen paying 4.64%, up 4.2 basis points, while the yield on the 10-year note was up 5.6 basis points to 4.258%.