Gold prices saw a modest increase on Thursday, supported by a weaker U.S. dollar and a decline in Treasury yields following the Federal Reserve’s decision to keep interest rates unchanged. Spot gold rose 0.2% to $1,986.29 per ounce, while U.S. gold futures gained 0.3% to $1,993.90.
The market appears to find support in the idea that the Fed might signal an end to rate hikes. With uncertainty around inflation and the possibility of reaching a peak in bond yields, gold is seen as increasingly well supported. The U.S. dollar index was down 0.5%, making gold more attractive for investors holding other currencies. Additionally, benchmark U.S. 10-year note yields dropped to a more than two-week low.
Market analysts suggest that the $2,000-per-ounce level may not be far from the current gold price, and given recent volatility, a return to that level is possible. Gold is often sought as a safe-haven investment during times of political and financial uncertainty.
Investors are keeping an eye on the upcoming U.S. non-farm payrolls report on Friday for further insights into the Fed’s interest rate path. Spot silver remained steady at $22.98 per ounce, platinum rose 0.8% to $928.07, and palladium climbed 0.9% to $1,113.80.
