Gold Touches Its Highest Level in Two Weeks After The US Federal Reserve

Gold prices rose Thursday, March 18th, to the highest level in more than two weeks after the US Federal Reserve pledged to keep interest rates near zero until 2023, but the gains of the yellow metal, which is considered a safe haven, were limited by the bank’s expectations of a strong recovery in the economy.

Spot gold rose 0.4% to $1750.82 an ounce, after touching its highest level since the first of March at $ 1755.25. US gold futures jumped 1.3% to $ 1749.80.

The Fed said on Wednesday that the US economy is on track to achieve the fastest growth in nearly 40 years while reiterating its position to pursue a super-easy monetary policy in light of an expected, albeit temporary, rise in inflation.

Rising interest rates and US Treasury yields increase the opportunity cost of holding the yellow metal that yields no return.

The dollar index fell to its lowest level in two weeks, while record US Treasury yields settled near the peak of more than a year.