Gold gains after US Fed maintains accommodative stance

Gold prices rose on Thursday bolstered by the US Federal Reserve's pledge to maintain easy monetary policy to aid economic recovery, while a weaker dollar provided further support.

FUNDAMENTALS

• Spot gold was up 0.2% at $1,784.94 per ounce by 0101 GMT, having dipped to $1,762 in the previous session, its lowest since April 16. US gold futures rose 0.6% to $1,784.50 per ounce.

• The dollar index edged 0.1% lower against its rivals, boosting gold's appeal for other currency holders.

• The Federal Reserve held interest rates and its bond-buying program steady on Wednesday after its two-day policy meet despite taking a rosier view of the US economic recovery.

• Fed Chair Jerome Powell also said the coming price increases would almost surely be of a passing nature, and not present the sort of persistent problem that would force the central bank to begin raising interest rates sooner than expected.

• US President Joe Biden plans to unveil a sweeping $1.8 trillion package for families and education in his first speech to Congress.

• Gold tends to benefit from widespread stimulus measures from central banks because it is viewed as a hedge against inflation.

• Meanwhile, the US trade deficit in goods jumped to a record high in March, suggesting trade was a drag on economic growth in the first quarter, but that was likely offset by robust domestic demand amid massive government aid.

• Autocatalyst metal palladium edged up 0.3% to $2,936.10 per ounce, having scaled an all-time peak of $2,962.50 on Tuesday.

• Silver gained 0.6% to $26.34 per ounce. Platinum was up 0.3% at $1,222.93.