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Gold flat as Fed keeps rates steady


Spot gold was flat at $2,314.89 per ounce and U.S. gold futures added 0.6% to $2,323.90

Gold prices held steady on Thursday, after the Federal Reserve left interest rates unchanged and indicated it was still leaning toward eventual cuts, while investors’ focus pivoted toward the U.S. non-farm payrolls data.

Spot gold was flat at $2,314.89 per ounce by 0703 GMT. Prices advanced 1.4% on Wednesday, their best day in more than two weeks.

U.S. gold futures added 0.6% to $2,323.90.

The Federal Reserve’s latest policy statement kept key elements of its economic assessment and policy guidance intact, framing its discussion of interest rates around the conditions under which borrowing costs can be reduced.

Fed Chair Jerome Powell said the next move would depend on data, but there was unlikely to be a hike.

Traders were relieved that Powell slammed the door shut for more rate hikes, helping gold prices jump back above $2,300, according to City Index senior analyst Matt Simpson.

After the meeting, U.S. short-term interest rate futures advanced as traders added to bets that the Federal Reserve will deliver at least one rate cut this year.

Lower interest rates raise the appeal of holding non-yielding bullion.

The U.S. non-farm payrolls report is due on Friday.

What traders would love to see now is a softer set of NFP figures. We are fast approaching the second half of the year, and in all the time central banks continue to pile into physical gold, I suspect gold can hold above $2,000 for the remainder of the year and break above $2,500, Simpson added.

Spot platinum added 1.1% to $960.80 per ounce after touching a two-week peak earlier, and palladium gained 0.5% to $953.45. In the meantime, silver dropped 0.3% to $26.56.

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