Gold Prices Rise as Fed Holds Rates Steady

by | May 2, 2024 | 0 comments

Latest Gold Prices Rise Update:

For the second time in two days, gold prices rise on Thursday as signalled by the Federal Reserve that interest rates might be decreased and attention shifts to the American non-farm payrolls data.

Spot gold price strengthened 0.3% at $2,325.02 per ounce by 0218 GMT after surging more than 1% on previous day. U.S. gold futures rose grew 1% to $2,334.40, As expected by market analysts, the Federal Reserve decided on Wednesday to maintain interest rates; neither it changed any key parts of its economic assessment nor policy direction in latest policy announcement that hinted at rate cuts under certain conditions.

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However, Jerome Powell mentioned that future decisions will be data-dependent but he does not expect any increase in rates for now.

According to Matt Simpson who is a senior analyst at City Index said that markets reacted well to Powell’s guarantee against further rises which helped supporting rebounding gold over $2300 mark again .

Post-meeting U.S. short-term interest rate futures rose, suggesting greater market expectations of atleast one rate cut by Fed within year’s end. Gold becomes relatively more attractive as interest rates fall because it does not yield interest itself.

On Friday we have got next big economic indicator which is U.S Non-farm payrolls report due for release soonest possible time. Simpson added “Weaker non-farm payroll figures are what traders hope for… ‘’ As we move closer into H2 with cbs continuing accumulation physical gold then likely it stays above $2000 rest of year potentially breaking through $2500 ’’.

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Elsewhere silver gained 0.4%, or spot price $26.75 an ounce while platinum increased 1% up to hit a two-week high earlier today at $959.40 palladium also rose about half percent higher – currently trading around $953.30 level. Platinum-palladium spread varied $200 negative to 0; reflecting mixed investor sentiment plus different views on global & individual economic fundamentals observed analysts at MKS PAMP this year.

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