Gold prices extended gains on Thursday, after statements by Federal Reserve Chairman Jerome Powell about the future hike in interest rates seemed less hawkish than expected, which led to a decline in the dollar and lower yields on Treasury bonds.
By 0205 GMT, spot gold rose 0.2 percent to $1,737.44 an ounce, after rising one percent to a two-week high in the previous session. And US gold futures rose one percent to $1,736.70 an ounce
The US central bank raised the interest rate yesterday, Wednesday, by 0.75 percentage points, in order to combat the rising inflation.
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Powell said another "unusually large" rate hike might be appropriate at the September meeting, but that the decision would be determined by the expected economic data.
The dollar fell 0.6 percent in the evening and hovered near its lowest level in three weeks on Thursday, which makes dollar-denominated gold less expensive for holders of other currencies.
The yield on US Treasuries also fell to approach the lowest level in two months. A lower yield reduces the opportunity cost of acquiring non-interest-bearing gold
As for other precious metals, silver increased in spot transactions 0.4 percent to $19.20 an ounce. Platinum rose 0.4 percent to $890 an ounce. And palladium rose 0.6 percent to $ 2042.51 an ounce
Source : Reuters
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