Gold Prices Maintain Gains After Warsh Speech!
Gold prices maintained their rebound after a speech by US Federal Reserve Chairman Kevin Warsh dampened speculation that the central bank might raise interest rates this year to combat inflation.
Gold traded around $4,045 an ounce on Thursday (July 2). Warsh's less aggressive than feared comments at a European Central Bank forum in Portugal on Wednesday eased concerns about the Fed's next steps after wars in the Middle East pushed energy prices and inflation indicators higher. Higher borrowing costs are a drag on the non-yielding precious metal. Warsh also reiterated the message from his first press conference as Fed chairman last month that the central bank will provide price stability, and reiterated his commitment to returning inflation to its 2% target.
Recent data paint a mixed picture for the US economy. Manufacturing activity increased for the sixth straight month in June but at a slower pace. Meanwhile, private-sector job creation returned solidly in June, capping the best three-month period for hiring in more than a year. Payrolls data due Thursday will provide further clues.
Spot gold rose 0.3% to $4,043.57 per ounce as of 8:15 a.m. in Singapore. Silver rose 0.4% to $59.35 per ounce. Platinum rose slightly, while palladium gained 0.4%. The Bloomberg Dollar Spot Index, a gauge of the US currency, was little changed. (asd)*
Source: Newsmaker.id
