icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm

Gold on course for best weekly gains in 2 months as US Fed shows no sign of changing its loose monetary policy

Gold on course for best weekly gains in 2 months as US Fed shows no sign of changing its loose monetary policy
Gold prices are hovering around a two-week high as of Friday, showing the biggest weekly gains in over two months as the US Federal Reserve keeps key policy rates unchanged, engendering investors' optimism about commodity markets.

Spot gold was up 0.1% at $1,829.10 per ounce at 09:17 GMT, before dropping back to $1,827.74 an ounce. On Thursday, the precious metal reached the highest price since July 15, at $1,832.40. Meanwhile, US gold futures eased 0.16% to $1,832.80.

Also on rt.com Gold on track for best month since last summer amid weaker dollar & inflation woes

On Wednesday, the Fed said benchmark interest rates would remain unchanged at 0-0.25%, providing no details on a potential tightening of its monetary policy introduced in 2020, when the world's largest economy was forced to deal with the economic impact of the Covid-19 pandemic.

According to Fed Chairman Jerome Powell, the US job market still has “some ground to cover” before the time comes to pull back from economic support. Meanwhile, the US economy expanded at a 6.5% annualized rate in the second quarter, according to the latest figures, which still fell short of analysts' expectations.

The news has predictably pushed the US dollar to a one-month low, putting it on track for its biggest down week in nearly three months, turning gold into one of the most appealing assets for other currency holders.

Also on rt.com Younger Indians prefer cryptocurrencies to traditional gold

“As the realization that the Fed is unlikely to tighten its policies anytime soon sinks in, the outlook for the US dollar turns into bearish territory,” Ricardo Evangelista, a senior analyst at ActivTrades, told Reuters, adding that gold could continue to find support in the short term.

Other precious metals saw mixed trading, with silver gaining 0.2% to $25.59 per ounce. Palladium was up by 0.2% to $2,651.85, while platinum slipped 0.8% to $1,052.14.

For more stories on economy & finance visit RT's business section

Dear readers and commenters,

We have implemented a new engine for our comment section. We hope the transition goes smoothly for all of you. Unfortunately, the comments made before the change have been lost due to a technical problem. We are working on restoring them, and hoping to see you fill up the comment section with new ones. You should still be able to log in to comment using your social-media profiles, but if you signed up under an RT profile before, you are invited to create a new profile with the new commenting system.

Sorry for the inconvenience, and looking forward to your future comments,

RT Team.