Gold prices rose on Thursday following a decline in the dollar after the US Federal Reserve decided to keep interest rates low. Spot gold was up 0. 2% at $1, 784.
26 per ounce by 05:38 GMT while US gold futures rose 0. 6% to $1, 784. 40 per ounce. Jeffrey Halley, OANDA senior market analyst said, “the Fed stayed close to its dovish message overnight at its latest FOMC meeting. With this risk point removed, investors rushed back into the global recovery trade, pushing the dollar lower, with US bond yields remaining unchanged.”
According to the Fed, a lot of people are still jobless, therefore, it will be too early for it to roll back its emergency support. Further helping gold was US President Joe Biden’s sweeping $1. 8 trillion package plan for families and education in his first speech to Congress. Gold serves as a hedge against inflation, hence, benefitting from the widespread stimulus.