Gold gains after US Federal Reserve maintains easy monetary policy stance




(Reuters) – rose on Thursday, as the dollar weakened after the U.S. Federal Reserve kept the interest rate unchanged and reiterated its stance to keep benchmark rates near-zero through at least 2023.


FUNDAMENTALS



* Spot gold rose 0.5% to $1,752.41 per ounce by 0119 GMT, while U.S. gold futures rose 1.3% to $1,748.80 per ounce.


* The U.S. central bank said on Wednesday that the economy is on track for its fastest expansion in nearly 40 years, but its policymakers pledged to keep their foot on the gas despite an expected surge in inflation.


* Lower interest rates reduce the opportunity cost of holding the non-yielding bullion and weigh on the dollar.


* The dollar index dropped 0.5% to 91.405, making the greenback-denominated metal cheaper for non-U.S. investors.


* U.S. Treasuries yields on the longer end of the curve remained elevated, while yields on shorter-term debt fell on Wednesday after the Federal Reserve’s views.


* Asian stocks were set for modest gains.


* A Reuters poll showed two-thirds of Japanese businesses expect the Bank of Japan to limit long-term interest rate rises and keep them stable, ahead of the central bank’s analysis this week.


* Officials say the U.S. will take an uncompromising stand in talks with China on Thursday in Alaska, in the first face-to-face meetings between senior officials from the two rivals since U.S. President Joe Biden took office.


* Silver rose 0.7% to $26.51, platinum was up 0.6% at $1,220.78 and palladium climbed 1.3% to $2,601.85


 


(Reporting by Diptendu Lahiri in Bengaluru; editing by Uttaresh.V)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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