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Gold futures climbed Thursday, a day after Federal Reserve Chair Jerome Powell said the central bank was not planning to hike interest rates by 75 basis points at its next meeting.
Gold futures
GC00,
rose over $20 per ounce to trade over $1,890 per ounce.
Powell told reporters after the Fed lifted rates by a half point and also started its quantitative tightening plan that a 75 basis point increase is not something the Fed is actively considering. “There’s a broad sense on the committee that additional 50 basis point increases should be on the table for the couple of meetings,” he said.
Powell’s comments led to Treasury yields softening, as well as the dollar falling.
“With support now established at $1850, a break above $1920 is now needed to reignite further interest in the yellow metal,” said Ole Hansen, head of commodity strategy at Saxo Bank.
Silver futures
SI00,
also rose, gaining 3% to just under $23 per ounce.
