The price of gold rose slightly as the chairman of the Federal Reserve took a less hawkish tone than expected when he kept interest rates on hold, and Japanese authorities were suspected of intervening to support the yen, hurting the dollar, reports Bloomberg.
Gold rose to $2,330 an ounce in early Asian trading, the biggest one-day gain since mid-April. Treasury yields fell on Wednesday – which favored gold – as Fed Chairman Jerome Powell played down the possibility of further hikes, although he reiterated that more evidence is needed that price rises are easing before he cuts borrowing costs. .
On global currency markets, the yen advanced by more than 3% against the dollar, fueling speculation that the Japanese authorities intervened for the second time this week to support the currency. An indicator of the dollar fell, which made the precious metal more attractive to most buyers.
Gold is up about 13% this year, hitting a record last month, even as the Fed’s rate cut schedule has been delayed. The increase in the last two months was linked to the strong purchases of the central banks, the demand from the Asian markets – especially China – and the conflicts from Ukraine to the Middle East.
Tags: price gold continues rise Fed decided maintain reference interest rate
