02:00 PM EDT, 05/27/2024 (MT Newswires) -- (Updates prices.)

Gold prices traded higher midafternoon, rising for the first time in five sessions early on Monday in light holiday trade as the dollar edged down.

Gold for August delivery was last seen up $21.30 to US$2,378.20 per ounce.

The price of the metal has weakened since closing at a record US$2,461.70 per ounce a week ago amid a correction and dimming expectations for near term interest-rate cuts from the Federal Reserve. The focus is moving to Friday's release of April PCE Index data, the Federal Reserve's preferred inflation measure. The data is expected to be unchanged from the prior month at an increase of 2.7% annualized, according to Marketwatch, keeping inflation ahead of the Fed's 2% target.

The "PCE print will give the next clue about inflation and how it may impact the FEDs thinking on rates", Saxo Bank noted.

The dollar edged lower, making gold more affordable for international buyers. The ICE dollar index was last seen down 0.15 points to 104.58.

Treasury yields are unavailable with markets closed for the U.S. Memorial Day holiday.