Gold rises after Fed eased its stance on interest rates

Gold prices rose on Wednesday as the dollar retreated from a one-month peak after comments from Federal Reserve Chairman Jerome Powell deemed less hawkish.

By 0744 GMT, spot gold rose 0.4 percent to $1880.97 an ounce, and US gold futures rose 0.4 percent to $1880.10.

Lower interest rates benefit gold as they reduce the opportunity cost of holding non-yielding yellow metal.

On Tuesday, Powell said the latest US jobs report showed it would take “some time” to bring inflation back to the 2 percent target, indicating the need for more rate hikes.

Gold prices rose on Tuesday after the dollar fell from its highest level in a month when Powell made his remarks, as most market participants seemed to agree that this did not come as a surprise with sharper monetary tightening.

Pressure continued on the dollar on Wednesday, and it fell in the latest trading by 0.2 percent, which increased the attractiveness of gold to buyers holding other currencies.

As for other precious metals, spot silver rose 1.1 percent to $22.43 an ounce, after hitting a two-month low in the previous session.

Platinum rose 1.2% to $985.10, and palladium rose 1.3% to $1,667.36.