Gold prices rise marginally in early trade

9 Mar 2023 , 08:19 AM

On Thursday, gold prices increased little as the dollar declined. Further increases in gold prices were curtailed because of Jerome Powell’s hawkish comments on interest rates.

Spot gold was up 0.1% at $1,815.58 per ounce after falling to a one-week low on Wednesday. At $1,819.10, U.S. gold futures were steady.

Since the dollar index has fallen from its three-month highs hit on Wednesday, buyers holding other currencies will find bullion more affordable.

On Wednesday, Fed Chair Powell reiterated his call for greater and possibly faster interest rate increases, but he also stressed that the debate was still in progress and that a decision would depend on information to be released prior to the policy meeting of the U.S. central bank in two weeks.

Although interest rate increases to control growing prices reduce the appeal of non-yielding bullion, gold is nonetheless regarded as a hedge against inflation.

The U.S. jobs data for February, which is due on Friday, will now be in the spotlight for investors.

According to the ADP National Employment report released on Wednesday, private employment climbed by 242,000 jobs in the past month.

Additional statistics released on Wednesday indicated a stubbornly tight labour market as U.S. job vacancies decreased less than anticipated in January.

A 50-basis-point increase is anticipated by the markets for the Fed’s policy meeting on March 21–22.

Spot silver was unchanged at $20.01 per ounce, while platinum and palladium both increased by 0.1% to $938.23 and $1,375.47, respectively.

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