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Gold prices climbed as the dollar declined on predictions of less aggressive rate hikes

23 Mar,2023
Gold prices climbed as the dollar declined on predictions of  less aggressive rate hikes

Gold prices ticked up on Thursday, still below the critical level of $2,000 in response to anticipation that the Federal Reserve will have limited capacity to raise interest rates further, which also caused the currency to weaken.

Spot gold advanced by 0.3% to $1,974.58 per ounce, meanwhile gold futures added 1.4% to $1,976.85 per ounce.

Markets wagered that the central bank's terminal rate was approaching despite the Fed raising interest rates as anticipated and reaffirming its commitment to containing inflation.

On Wednesday, the Fed hiked interest rates by quarter points, but it toned down its rhetoric about tightening monetary policy, suggesting that it may eventually consider taking a break from tightening policy to prevent more economic headwinds. The bank also decreased its annual prediction for economic growth.

As worries about a banking crisis subsided, copper prices soared back to important levels on Thursday.

Copper futures edged up by 0.8% to $4.0690 per pound.

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