daniel chigunwe
Gold edged higher as the Federal Reserve struck a less hawkish tone than expected when holding interest rates steady, and Japanese authorities were suspected to have intervened to support the yen, hurting the dollar.
Bullion rose toward US$2 330 an ounce in early Asian trade after ending 1.5 percent higher in the prior session, the biggest one-day gain since mid-April.
Treasury yields tumbled on Wednesday — buoying bullion — as Fed Chair Jerome Powell downplayed the possibility of hikes, though he reaffirmed the need for more evidence that price gains are cooling before reducing borrowing costs.
On global currency markets, the yen advanced more than 3 percent against the dollar, fueling speculation that Japanese authorities intervened for a second time this week to support the currency.
A gauge of the greenback dropped, making the precious metal more attractive to most buyers.
Gold has climbed by about 13 percent this year, hitting a record last month, even as the timeline for Fed cuts has been pushed back.
The rally over the past two months has been linked to strong central-bank purchases, demand from Asian markets — especially China — and conflicts in Ukraine to the Middle East.
Spot gold was up 0.3 percent to US$2 326.03 an ounce at 9:07 a.m. in Singapore, as silver rose toward US$27 an ounce. The Bloomberg Dollar Spot Index fell 0.3 percent.
Palladium traded below platinum, after dropping below its sister metal for the first time since February on Wednesday as its long-standing premium gets eroded by a pessimistic outlook for demand in gasoline-powered cars. — Bloomberg
Online Reporter