## Gold Prices Stabilize Await Fed Comments
February 7, 2024, 4:54 AM (GMT)
Gold prices remained steady on Wednesday as traders awaited comments from various inflation-sends-wall-street-red/” title=”Fear of inflation sends Wall Street red”>Federal Reserve officials this week. These comments will provide insight into the pace of potential interest rate cuts by the central bank.
Spot gold traded at $2,035.12 an ounce by 1:31 GMT, having risen over 0.5% in the previous session. U.S. gold futures also remained unchanged at $2,051.20 an ounce.
Federal Reserve officials hinted at a potential rate cut if the U.S. economy performs as expected. However, they emphasized that the battle against inflation is far from over, and a decision on rate cuts will be made cautiously. Higher interest rates could reduce the appeal of holding gold, as it offers little to no yield.
The value of the dollar index and yields on benchmark 10-year Treasury notes declined, making gold comparatively more attractive to investors seeking safety in non-yielding assets.
Among other precious metals, silver rose 0.1% to $22.41 an ounce, platinum remained steady at $903.99, and palladium fell 0.1% to $949.83.