Gold gains after slightly dovish undertone in US Fed statement

Published on Jul 28, 2022 12:26

Gold prices are firm near two week high, guided by weakness in US dollar. The dollar index is languishing near a week low at 106.08, tracking lower treasury yields following Fed rate decision. The Federal Reserve on Wednesday announced its decision to raise interest rates by 75 basis points. The Fed said it decided to raise the target range for the federal funds rate to 2.25 to 2.50 percent in an effort to achieve its dual goals of maximum employment and inflation at a rate of 2 percent over the longer run. The decision to continue raising interest comes even though the Fed acknowledged that recent indicators of spending and production have softened, leading to concerns about a potential recession. COMEX Gold futures are currently up close to 1% at $1739.70 an ounce.