Gold consolidates its gains amid bets on halting US interest increases

Gold prices extended gains on Thursday after the Federal Reserve indicated that the end of the monetary tightening cycle may be on the horizon.

Gold in the spot market rose 0.4 percent to $1,976.80 an ounce by 0910 GMT, while US gold futures rose 1.5 percent to $1,979.20.

The dollar index fell 0.2 percent, making gold more attractive to buyers in other currencies.

Fed policymakers believe that beating inflation may require one more rate hike this year. But Federal Reserve Chairman Jerome Powell told a news conference that the Fed would take “adequate” measures to bring inflation down to 2 percent and raise rates higher if necessary.

On Monday, gold recorded the highest level in a year, exceeding $ 2,000 an ounce, with increasing demand for it as a safe haven after the banking sector turmoil, but it gave up some of its gains after the Credit Suisse bailout deal.

As for other precious metals, silver in the spot market fell 0.8 percent to $ 22.85 an ounce, while platinum increased 1.1 percent to $ 988.23, and palladium rose 0.9 percent to $ 1464.01.