On Thursday, the precious safe-haven US gold futures’ prices had leapfrogged roughly 2.0 per cent, while spot gold gained 1.3 per cent as investors had jumped on the bandwagon of a mass-scale buying spree what many analysts had claimed would sustain.
In point of fact, latest blowout gains in gold futures’ prices came forth a day after the US Fed Chair Jerome Powell was quoted saying following a two-day July policy meet that the Central Bank would highly unlikely to raise its benchmark borrowing cost in a near term.
Besides, as the US Federal Reserve had kept its benchmark interest rate unchanged at a near-zero level, the US Dollar Index (DXY) tumbled for a second straight session in a row, adding to further bullish bias on gold futures prices.
On top of that, US Commerce Department had said earlier in the day that the US economy had notched a gross output of 6.5 per cent in the second quarter, below an analysts’ estimate of 8.3 per cent, imperatively wiping out a safe-haven appeal for the greenback what appeared to have fared well for the precious yellow metal.
US Gold futures gain roughly 2 per cent after Powell’s dovish remarks
Citing statistics, in the day’s commodity market round-off, spot gold gained 1.3 per cent to $1,830.11 an ounce after hitting $1,832.40 per ounce earlier in the day, the strongest level since July 15, while US gold futures’ prices had wrapped up the day 1.8 per cent higher to $1,831.20 an ounce.
Among other precious metals, silver futures climbed 2.8 per cent to $25.62 an ounce and platinum contracts gained 0.1 per cent to $1,065.61 an ounce, while palladium rose 0.8 per cent to $2,647.62 per ounce. Meanwhile, addressing to a dovish Fed, a director of metals trading at High Ridge Futures, David Meger said, “You’re going to see inflation heat up moving forward because the Fed is more focused on employment and is not going to fight them in the near-term and that is a positive environment for precious metals.
This is not a flash-in-the-pan type rally but a more sustainable one because nothing is standing in gold’s way”.