Gold prices steady after recovering past $2,300; rate jitters persist

May 02, 2024 02:58 PM AEST | By Investing

Gold prices steady after recovering past $2,300; rate jitters persist

Fed offers mixed signals, nonfarm payrolls awaited

The Fed kept interest rates steady on Wednesday, as widely expected.

But Chair Jerome Powell, in his post-meeting address, offered somewhat mixed signals on the path of rates.

While Powell said that stalling disinflation- particularly in inflation moving towards the Fed’s 2% target- gave the bank little confidence to begin cutting interest rates early. But Powell also said that the bank did not plan to hike rates further.

The latter comment spurred some weakness in the dollar, pulling it off near six-month highs. This move offered some relief to metal prices, which were nursing steep losses in the lead-up to the Fed meeting.

Still, the prospect of U.S. rates remaining high for longer dents the outlook for gold prices, especially given that safe haven for the yellow metal was also seen declining in recent sessions.

Other precious metals rose on Thursday after bruising losses earlier this week. Platinum futures rose 0.6% to $968.30 an ounce, while silver futures rose 0.3% to $26.825 an ounce.

Copper prices steady below 2-year highs

Among industrial metals, copper prices steadied near two-year highs as uncertainty over U.S. interest rates stalled a recent rally in the red metal.

Three-month copper futures on the London Metal Exchange rose 0.5% to $9,950.0 a ton, while one-month copper futures fell 0.1% to $4.5648 a pound.

Both contracts remained well below two-year highs hit in April, as markets awaited more cues on economic growth and demand.

This article first appeared in Investing.com

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