Gold rises after the US Central Bank fixed interest rates

Gold prices continued their upward trend for the second consecutive session on Thursday following indications from the Federal Reserve (US central bank) suggesting a potential future interest rate cut.

Gold edged up by 0.3 percent to $2,325.02 per ounce by 0218 GMT, building upon its more than one percent gain in the previous session.

US gold futures also climbed by 1 percent to $2,334.40.

In its decision on Wednesday, the US Central Bank maintained interest rates as anticipated. Federal Reserve Chairman Jerome Powell stated that future actions would hinge on incoming data, while dismissing the likelihood of rate hikes.

Matt Simpson, chief analyst at City Index, noted that traders were relieved by Powell’s stance, which effectively closed the door on further rate increases and supported a resurgence in gold prices above $2,300.

Lower interest rates enhance the appeal of holding non-yielding assets like gold.

In other precious metals, silver advanced by 0.4 percent in spot transactions to $26.75 per ounce. Platinum surged by 1 percent to $959.40 after hitting its highest level in two weeks earlier in the session. Palladium also saw gains, rising by 0.5 percent to $953.30.