Gold prices saw a marginal decline on Thursday after the Federal Reserve kept interest rates unchanged on Wednesday. Investor focus now shifts to the U.S. non-farm payrolls data due on Friday.
Spot gold saw a 0.23 percent decline to $2,314.14 per ounce, as of 6:11 GMT, after rising over 1 percent on Wednesday. Meanwhile, U.S. gold futures saw a 0.60 percent increase to $2,314.14.
Fed interest rates
The Federal Reserve held interest rates steady in its latest policy meeting on Wednesday. Fed Chair Jerome Powell emphasized that any future rate adjustments would be data-dependent, but an increase was unlikely. Powell’s assurance that further rate hikes were off the table provided relief to traders, prompting a resurgence in gold prices in early trading, with the precious metal surpassing the $2,300 mark.
Traders welcomed Powell’s stance on ruling out further rate hikes, which contributed to the rebound in gold prices. Post-meeting, U.S. short-term interest-rate futures climbed as traders bet on at least one rate cut this year. Lower interest rates enhance the attractiveness of holding gold, which doesn’t yield interest.
Focus shifts to non-farm payrolls
Investor attention now turns to the U.S. non-farm payrolls (NFP) report scheduled for release on Friday. Traders are particularly waiting for softer NFP figures, which could further support gold prices. Analysts expressed optimism regarding gold’s prospects for the remainder of the year, predicting that it could maintain levels above $2,000 and potentially breach the $2,500 mark.
Read: Oil prices rally as U.S. crude inventories surge, Fed maintains interest rate
Other precious metals
In addition to gold prices, spot silver experienced a 0.48 percent decline to $26.51 per ounce. Platinum recorded a substantial gain of 0.91 percent, hitting $958.80 after reaching a two-week high earlier in the session. Palladium also saw a modest uptick of 0.20 percent, reaching $950.70.
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