Gold advances as US Fed hints rate-hike break
* Spot gold rose 0.8% at 2,055.54 per ounce by 0035 GMT. US gold futures were up 1.3% at $2,063.20.
* Earlier in the session, bullion prices rose to $2,072.19 per ounce and hovered close to an all-time high of $2,072.49 scaled in 2020.
* The US central bank raised its benchmark overnight interest rate by a quarter-of-a-percentage point, as expected by markets. The Fed no longer said it “anticipates” further rates increases will be needed, only that it will watch incoming data to determine if more hikes “may be appropriate.”
* Lower rates tend to boost demand for the zero-yielding asset.
* Fed Chair Jerome Powell on Wednesday said “the case of avoiding a recession is in my view more likely than that of having a recession.” * The European Central Bank is expected later in the day to raise interest rates for the seventh meeting in a row.
* The dollar index was down 0.2%, making greenback-priced gold more affordable for overseas buyers.
* Spot silver rose 0.5% at $25.72 per ounce, platinum gained 0.7% to $1,056.29 while palladium edged 0.8% higher to $1,433.75.