On Monday, spot gold prices surged to a historic high of $2,265.77 per ounce, after US personal consumption expenditure (PCE) inflation data strengthened market expectations that the Federal Reserve may cut interest rates in June.

Last Friday's data showed that the core PCE inflation rate in the United States dropped to 2.8% in February, the lowest level in nearly three years, compared to 2.9% in January. On a month on month basis, core PCE prices increased by 0.3% in February.

Both of these data are consistent with market consensus.

IG market strategist Yeap Jun Rong said, "The release of the core PCE price index did not show any upward surprises, which may further push gold prices to a historic high."

According to the FedWatch tool of the Chicago Mercantile Exchange (CME), the market now has a probability of approximately 69% for the Federal Reserve to cut interest rates in June, compared to 64% before the release of PCE data.

Lowering interest rates will lower the opportunity cost of holding gold, as gold itself does not pay interest.

Meanwhile, Federal Reserve Chairman Jerome Powell stated that the latest inflation data "aligns with what we want to see."

As of 7:11 Greenwich Mean Time on Monday, spot gold prices rose 1.20% to $2,259.95 per troy ounce.

The gold futures delivered in June rose 1.88% on the same day, trading at $2,280.40 per troy ounce.

In other aspects, the price of silver futures for delivery in May increased by 1.70% to $25.340 per troy ounce.

The US dollar index fell slightly by 0.03% on Monday to 104.507. The US dollar index reflects the relative strength of the US dollar against a basket of six other major currencies.