02:04 PM EDT, 04/01/2024 (MT Newswires) -- Gold rose to fresh record high on Monday, climbing for a fifth-straight session as buying momentum continues after a key US inflation measure rose less than expected in February, raising expectations the Federal Reserve will lower interest rates this year.

Gold for June delivery closed up US$18.70 to settle at US$2,257.10 per ounce.

The rise follows the Friday release of the February US PCE Index, the Federal Reserve's preferred inflation measure. The index rose 0.3% from January, under the consensus estimate for a 0.4% monthly rise, according to Marketwatch, while core PCE, excluding volatile items, was up 2.8% annualized, matching estimates, and down from 2.9% in January.

The lower than expected print increases expectations the Fed will stick to an expected 75 basis points in cuts to interest rates this year, lowering the carrying cost of owning gold.

"The personal spending print released on Friday was strong, but the core PCE inflation was slower than anticipated. These data continue to point to a Goldilocks US economy, Saxo Bank noted.

The dollar rose, making gold more expensive for international buyers. The ICE dollar index was last seen up 0.44 points to 104.99.

Treasury yields also rose, bearish for gold since it offers no interest. The US two-year note was last seen paying 4.718%, up 8.6 basis points, while the yield on the 10-year note was up 12.3 basis points to 4.328%.