Gold extended gains on Thursday, after having hit its highest level since April 2022 the previous day amid a weakening dollar and falling bond yields.
Spot gold rose 0.3 percent to $1,956.44 per ounce, while U.S. gold futures were up 1.5 percent at $1,971.80.
The dollar hit a 10-month low against the euro and Eurozone bond yields dipped after Federal Reserve Chair Jerome Powell acknowledged that inflation was starting to ease and that financial conditions had tightening significantly over the past year.
On Wednesday, the Fed raised rates by 25 bps, as widely expected, and said “ongoing increases” in main rate will be appropriate to keep inflation under control.
The next monetary policy meeting is scheduled for March 21-22, with CME Group’s FedWatch Tool currently indicating an 81.8 percent chance the Fed will raise rates by another 25 basis points.
The European Central Bank and the Bank of England will announce their interest-rate decisions later in the day.
Both central banks are expected to raise rates by 50 basis points and ECB President Lagarde’s press conference will be the key driver for markets.
The material has been provided by InstaForex Company – www.instaforex.com
- *Brazil Dec Retail Sales Up 0.4% Y/Y Vs. 1.4% In November - February 9, 2023
- *Mexico Jan CPI Rises 0.68% M/M Vs. 0.38% In December - February 9, 2023
- *Brazil Dec Retail Sales Down 2.6% M/M Vs. -0.9% In November - February 9, 2023
