Gold drifts lower after Fed meet refutes March rate cut prospects

BENGALURU: Gold prices edged lower on Thursday, weighed by a stronger dollar after the Federal Reserve resisted the idea of a rate cut in March, but bullion held its ground as investors continued to cling to the hope that interest rates would be trimmed later this year.

Spot gold slipped 0.2% at $2,033.09 per ounce by 1250 GMT. US gold futures fell 0.8% to $2,050.00.

Economic data from the US has been raising further concerns about the direction of the reduction in rate cuts expectations but the support around the $2000 level has been relatively strong, said Ole Hansen, Saxo Bank’s head of commodity strategy.

“Overall, the gold market is really being underpinned by continued belief in rate cuts and the lower yields we’ve seen since yesterday and this is happening despite some dollar strength.”