News ID: 112255
Publish Date : 08 February 2023 - 21:32

Gold Climbs for Third Day as Dollar Pauses on Fed Cues

NEW YORK (CNBC) - Gold extended gains to a third session on Wednesday boosted by a weaker dollar and comments from U.S. Federal Reserve Chair Jerome Powell, while markets awaited more economic data for guidance on future rate hikes.
Spot gold rose 0.6% to $1,884.06 per ounce. U.S. gold futures added 0.4% to $1,883.20.
The dollar index was down 0.3% on the day after Powell avoided hardening his tone on inflation despite a resilient labor market. A weaker dollar makes gold a more attractive bet for overseas buyers.
Daniela Hathorn, analyst at Capital.com, noted that while Powell said U.S. interest rates might need to go higher “his mention of disinflation led markets to believe he was more dovish than originally expected.”
High interest rates discourage investors from placing money in non-yielding assets like gold.
Gold prices have eased from the key psychological $1,900 an ounce level, subdued in part by bets for interest rate hikes to continue, albeit at a slower pace.
Investors’ focus now turns to the U.S. Labor Department’s weekly jobless claims report ahead of the January inflation numbers next week.
Elsewhere, spot silver gained 1.3% to $22.48, after hitting its lowest level in two months on Tuesday.
Platinum climbed 1.5% to $988.19, while palladium jumped 1.8% to $1,675.14.