Gold Stays Near Lowest Level in 3 Months

Gold prices showed little change on Thursday after new comments from the Federal Reserve regarding interest rate hikes this year, keeping the yellow metal close to its lowest level in three months reached in the previous session. As of 02:42 GMT, spot gold steadied at $1,932.35 per ounce. U.S. gold futures fell 0.1% to $1,942.70. Federal Reserve Chairman Jerome Powell told lawmakers in Congress, "Expecting further rate increases is a very good guess at where the U.S. central bank is headed if the economy remains on its current path." Rising interest rates tend to reduce the appeal of gold, which does not yield interest. Edward Meir, a metals analyst at Marex, stated, "The market still believes the central bank is very close to ending rate hikes," which is why gold hasn't dropped to a level of collapse. Markets anticipate a 72% chance that the U.S. central bank will raise interest rates by 25 basis points next month, according to the CME's FedWatch tool. The dollar index remained near the low levels it reached on Wednesday. Typically, a weaker dollar makes gold more attractive to foreign investors.