1 month ago
Commodities

Gold Prices Gain, U.S. Dollar Slips After Fed Meeting

Investing.com - Gold prices gained on Thursday in Asia and remained above the key $1,300-an-ounce level for the fifth day

Investing.com - Gold prices gained on Thursday in Asia and remained above the key $1,300-an-ounce level for the fifth day in a row.

Gold futures for February delivery traded 0.7% higher to $1,318.75 by 1:51 AM ET (06:51 GMT) on the Comex exchange. 

Meanwhile, the U.S. dollar index edged down 0.1% to 94.980 on Thursday after falling sharply against its rivals the previous day, after the Federal Reserve left interest rates unchanged and vowed to keep the brakes on further rate hikes.

The central bank said it would be “patient” in raising rates this year as it pointed to rising uncertainty about the economic outlook.

"In light of global economic and financial developments and muted inflation pressures, the Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes," the Fed said.

Gold tends to rise on expectations of lower interest rates, as it reduces the opportunity cost of holding non-yielding bullion.

Gold futures' gain on the year itself is a modest 2.2%, but almost all of that gain came from the past four sessions, indicating that the yellow metal may have found the legs to a rally. Gold has struggled since last summer in part because of four Fed rate hikes in the last year.