Gold prices saw a slight increase on Thursday as both U.S. Treasury yields and the dollar dipped. This movement came in the aftermath of the Federal Reserve's decision to raise its policy interest rate by 25 basis points. Federal Reserve Chairman, Jerome Powell, discussed the decision during a press conference, offering few surprises.
Price Action
- Gold for August delivery (GC00, +0.32% GCQ23, +0.32%) climbed by $7.40 or 0.4%, reaching $1,977 per ounce on Comex.
- Silver futures for September delivery (SI00, +1.10% SIU23, +1.10%) gained 15 cents or 0.6%, settling at $24.97 per ounce.
- October platinum (PLV23, -0.53%) experienced a decline of $1.20 or 0.1%, reaching $970 per ounce.
- Palladium for September delivery (PAU23, -0.51%) fell by $1.90 or 2% to hit $1,254 per ounce.
- Copper for September delivery (HGU23, -0.14%) remained relatively steady at $3.90 per pound.
Market Drivers
The U.S. dollar experienced a slight decrease on Thursday following Chairman Jerome Powell's address, which hinted at the possibility of further interest rate increases later this year. This came after an expected rise of a quarter percentage point in the policy interest rate.
Manoj Ladwa, Director at ARJ Capital, noted that with the dollar under pressure, gold prices are likely to continue rising if the sell-off of the dollar deepens.
The ICE U.S. Dollar Index (DXY, -0.14%), a widely observed indicator of the dollar's value against other major currencies, saw a 0.2% decrease, settling at 100.66 in recent trade.
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