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Gold futures closed higher on Thursday, recovering from early weakness, amid expectations the lower interest regime will continue to push up bullion prices.

The Federal Reserve had said on Wednesday that interest rates will remain near-zero levels through 2023.

The dollar’s rise amid a surge in U.S. Treasury yields limited gold’s upside. The dollar index rose to 91.90, gaining more than 0.5%.

The yield on U.S. Treasury Notes rose after the Fed lifted expectations for GDP growth and inflation. The yield on the benchmark ten-year note has jumped above 1.7% to reach its highest levels since last January, while the thirty-year bond yield has shot up to its highest levels since last summer.

Gold futures for April ended higher by $5.40 or about 0.35% at $1,732.50 an ounce, after having surged to $1,754.80 overnight amid reaction to the Federal Reserve’s comments that the bank is unlikely to hike rates in the foreseeable future.

Silver futures for May ended higher by $0.293 at $26.351 an ounce, while Copper futures for May settled at $4.1080 per pound, down $0.0110 from previous close.

In U.S. economic news, the Labor Department’s report said initial jobless claims climbed to 770,000 in the week ended March 13th, an increase of 45,000 from the previous week’s revised level of 725,000. Economists had expected jobless claims to edge down to 700,000 from the 712,000 originally reported for the previous week.

A separate report released by the Philadelphia Federal Reserve showed its reading on regional manufacturing activity spiked to a nearly 50-year high in March.


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