Gold prices halt losses after US Fed’s outlook surprises
Gold is highly sensitive to rising interest rates, which lift the opportunity cost of holding nonyielding gold
Bengaluru — Gold prices steadied on Thursday, after shedding 0.5% in the previous session as the US Federal Reserve delivered a less-dovish outlook on monetary tightening than many had expected. In a widely anticipated decision, the US central bank hiked interest rates by 25 basis points on Wednesday. But what took markets by surprise was the Fed's commitment to retain the core of its plan to tighten monetary policy, despite rising uncertainty about global economic growth. Spot gold rose 0.1% to $1,244.56 per ounce at 5.06am GMT, after declining the most since November 27 in the previous session. Prices crossed the 200-day moving average of about $1,252 an ounce before the Fed's statement on Wednesday. US gold futures declined 0.7% to $1,247.7 per ounce on Thursday. "The Fed was not exactly clear on what they will do. They did say they would increase interest rates, but would be more patient in doing so," said Brian Lan, MD at dealer GoldSilver Central in Singapore. "General consens...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.