Gold Gains After Powell Calms Interest Rate Fears

Gold prices rose on Wednesday, June 23, after US Federal Reserve Chairman Jerome Powell pledged to keep interest rates near zero for some time, bringing the dollar to near its lowest level in a week.

Spot gold rose 0.2% to $1,782.46 an ounce, and gold futures in the United States gained 0.3% to $1,782.40.

Gold is heading to rise thanks to expectations of low interest rates, which reduces the opportunity cost of acquiring the yellow metal, which does not generate returns. And gold fell 6% last week, following the monetary tone of the Fed at its meeting and its signal to raise interest rates in 2023.

In his remarks yesterday, Powell reiterated his determination to encourage a “widespread and comprehensive” recovery of the labor market, and that raising interest rates would not be based solely on fears of future inflation.

In terms of other precious metals, silver rose 0.7% to $25.93 an ounce, and palladium rose 1.5% to $2595.96, while platinum rose 0.9% to $1,089.16.