Gold prices climbed as the dollar softened, with investors awaiting upcoming US economic data after the Federal Reserve provided limited guidance on its next policy moves.
Bullion edged higher to around $2,778, about $12 off its all-time-high, News.Az reports, citing Bloomberg.A gauge of the greenback fell 0.1%, after spiking in the wake of the Fed’s press conference Wednesday. Fed Chair Jerome Powell said officials won’t rush to lower US interest rates, adding that the central bank is pausing easing to see further progress on inflation.
Swaps traders now price in about 50 basis points of rate cuts this year, while many investment banks predict no cuts at all. Higher rates tend to pose a headwind for gold, as it doesn’t pay interest.
The next clue on the health of the US economy will come later Thursday, when fourth-quarter GDP figures are released.
The Fed’s stance comes as President Donald Trump creates uncertainty over the broader economic outlook by threatening to slap tariffs on imports and promising to lower taxes, both of which could put upward pressure on inflation. When asked about the potential impacts of the new administration’s policies, Powell said the central bank was in a “wait-and-see” mode.
Spot gold rose 0.7% to $2,777.98 an ounce at 10:56 a.m. in London. Silver, platinum and palladium rose.
