Gold prices continued their upward trajectory on Thursday after the U.S. Federal Reserve hinted at the end of the monetary tightening cycle, signaling a reduction in borrowing costs in 2024. This led to a decline in the U.S. dollar and Treasury bond yields.
In spot trading, gold rose by 0.3% to $2,032.07 per ounce, following a 2.4% increase on Wednesday. Meanwhile, U.S. gold futures surged by 2.5% to $2,046.80.
The dollar weakened to its lowest level in two weeks against its counterparts, making gold more affordable for holders of other currencies.
Additionally, yields on the benchmark U.S. ten-year Treasury bonds dropped to their lowest since August.
The Federal Reserve’s decision to leave interest rates unchanged for the third consecutive meeting, as widely anticipated, contributed to the favorable conditions for gold, as investors seek refuge amid the evolving economic landscape.