Gold prices moved higher by more than 1% on Thursday as investors reacted to the U.S. Federal Reserve’s latest interest rate decision and its indication that further rate hikes could still be possible. At the same time, oil prices lost some of their recent momentum, which helped support the precious metal.
Spot gold rose 1.1% to $4,310.49 per ounce by 01:49 GMT after falling to its lowest level in nearly six weeks during the previous session. However, U.S. gold futures for December delivery slipped about 1% to $4,348.70 per ounce.
Investors also kept a close watch on the Bank of England, which left interest rates unchanged while markets looked for clues about whether rising energy costs could lead to future policy changes.
Kelvin Wong, Senior Market Analyst at OANDA, said that weaker oil prices could provide support for gold over the medium term. He added that the latest rise in gold was mainly driven by technical market factors, as investors had already priced in the Federal Reserve’s tougher stance on interest rates.
Other precious metals also posted gains. Silver climbed 1.4% to $63.83 per ounce, platinum rose 1.6% to $1,780.55, and palladium advanced 2% to $1,295 per ounce.
