Gold gains ground on softer dollar
The dovish Fed stance on rate hikes weakened the dollar, boosting bullion, but gains have been constrained by increased interest in riskier assets
Bengaluru — Gold prices firmed on Thursday as the dollar faltered following dovish comments from US Federal Reserve chair Jerome Powell, calming investor concerns over the pace of rate hikes. Spot gold was up 0.3% at $1,224.13 an ounce at 4.10am GMT. Prices climbed about 0.6% on Wednesday, their biggest one-day percentage gain since November 16. US gold futures were little changed at $1,223.2 an ounce. “The dovish Fed stance was relatively constructive from pure dollar trade perspective and it could edge off the dollar and continue to do so until the year end, which is quite significant for gold prices,” said Stephen Innes, Asia-Pacific trading head at Oanda in Singapore. The dollar slipped from a two-week high on Wednesday after Powell said interest rates were just below neutral, raising expectations that the US central bank was closer to the end of its rate-hike cycle. “A weaker dollar helps other local currencies such as China and India get back in the game, which could add to go...
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