Gold jumps to $ 1,831 an ounce on the international market
Gold prices jumped more than 1% on Thursday after moving sideways over the past week, as investors reacted to accommodative messages from the U.S. Federal Reserve after keeping the benchmark interest rate close to zero (as expected).
The spot gold was up 1.3% at $ 1 830.06 an ounce at noon ET, near its highest level since mid-July. US gold futures gained a larger 1.7%, trading at $ 1,831.40 an ounce in New York.
Fed Chairman Jerome Powell said on Wednesday the central bank was “far from considering a rate hike” despite optimism about the economy.
He added that the US labor market still has “a long way to go” before it is time to withdraw support.
Reinforcing Powell’s point of view, the data showed that the U.S. economy grew at an annualized rate of 6.5% in the last quarter, short of forecasts of an 8.5% increase by economists in a Reuters poll .
An accommodating tone from the Fed is good news for gold, as lower interest rates lower the opportunity cost of holding unproductive bullion.
Adding to gold’s support, the dollar index slipped to a one-month low, making gold cheaper for holders of other currencies.
