Gold Holds Ground Above $1,990, Fed`s Rate Pause Sparks Market Confidence

Published on Nov 03, 2023 13:10

Gold futures remained stable above $1,990 per ounce on Friday, supported by a weaker US dollar and lower Treasury yields, as there`s a growing belief that the US Federal Reserve has completed its interest rate hikes. The Fed maintained its policy rate this week but didn`t rule out the possibility of further rate increases due to persistent inflation and a resilient economy. However, the general sentiment in the markets is that the Fed won`t proceed with more rate hikes, as the full effects of previous increases on the economy have yet to materialize. Investors are now focused on the monthly US jobs report to assess labor market strength and its impact on future interest rates. On the other hand, gold, which had reached multi-month highs of near $2020 last week, saw a slight retreat, partly due to reduced geopolitical concerns in the Middle East. MCX December gold futures were last seen trading at Rs 60952 up Rs 41 per 10 grams.