Gold prices up marginally

13 Jun 2024 , 09:00 AM

Following the U.S. Federal Reserve’s announcement on Wednesday that it only anticipates one interest rate drop this year due to persistently high levels of inflation, gold prices gave up some of their gains.

After climbing as much as 1% earlier in the day, spot gold increased by 0.3% to $2,322.46 per ounce.

August delivery Gold futures ended 1.2% higher at $2,354.8.

On Wednesday, the Federal Reserve kept interest rates unchanged, signalling that policymakers only planned to lower rates once in 2024.

Fed Chair Jerome Powell stated that the Fed’s inflation projection is “a fairly conservative forecast” that could be revised and may not be supported by upcoming data.

Powell went on to say that authorities were pleased with the higher-than-expected inflation consumer price index data.

In May, the headline consumer price index did not increase by 0.1% as expected; instead, it remained unchanged month over month. Core prices increased by 0.2%, less than the 0.3% gain predicted by economists.

The dollar index was down 0.6%, reversing some of the previous losses following the Fed’s decision to lower interest rates.

Prior to the announcement of the Fed’s decision, bets on a rate cut during the September meeting of the Fed had dropped from around 71% to roughly 64%.

Spot silver increased 1.5% to $29.69 an ounce, palladium gained 2.6% to $907.01, and platinum increased 1.2% to $962.85.

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