Gold Steady After Fed Comments!
Gold steadied after a decline in the previous session that was triggered by Federal Reserve Chairman Jerome Powell’s warning about inflation risks to the U.S. economy.
Bullion was trading around $3,375 an ounce, after falling 0.6% on Wednesday. While the Fed left interest rates unchanged and policymakers still expect two cuts by the end of the year, Powell said the central bank’s market committee continues to expect tariffs to affect final prices.
Fed policymakers also released new economic forecasts — the first since President Donald Trump announced a series of sweeping tariffs in April — showing they expect weaker growth, higher inflation and lower employment this year. A significant rise in consumer prices could limit monetary easing, which would be negative for gold since it does not pay interest.
Gold is still getting support from ongoing tensions in the Middle East. Trump has said Iran has squandered an opportunity to make a deal over its nuclear capabilities and some U.S. officials are said to be preparing for a possible attack on Iran in the coming days. Rising geopolitical tensions and economic uncertainty have combined with robust central bank buying and inflows into exchange-traded funds, pushing the precious metal nearly 30% higher this year.
Spot gold rose 0.1% to $3,373.73 an ounce as of 12:06 p.m. in Singapore. The Bloomberg Dollar Spot Index was little changed.
Meanwhile, platinum jumped more than 2% to $1,350.17 an ounce, its highest in more than a decade, with gains supported by surging demand and an ongoing market deficit. Silver, meanwhile, is trading near its highest since 2011.
“Gold is currently sitting near record highs which makes further investment vulnerable to macroeconomic changes, and that’s probably why we’re seeing safe-haven flows diverted into platinum and silver,” said Priyanka Sachdeva, an analyst at Phillip Nova Ptd Ltd.(ayu)
Source: Bloomberg
