Bengaluru- Gold prices edged higher for a second straight session on Thursday after the Federal Reserve indicated that it is still leaning toward eventual rate cuts, while investors’ focus pivoted toward the US non-farm payrolls data.
Spot gold firmed 0.3 percent at $2,325.02 per ounce, after climbing over 1 percent in the previous session.
US gold futures rose 1 percent to $2,334.40.
The Fed left interest rates unchanged on Wednesday as expected. Its latest policy statement kept key elements of its economic assessment and policy guidance intact, framing its discussion of interest rates around the conditions under which borrowing costs can be lowered.
Fed Chair Jerome Powell said the next move would depend on the data but that there was unlikely to be an increase.
Traders were relieved that Powell slammed the door shut for further hikes, helping gold prices climb back above $2,300, City Index senior analyst Matt Simpson said.
Following the meeting, US short-term interest-rate futures rose, as traders added to bets that the Fed will deliver at least one rate cut this year.
