Investing.com – Gold prices climbed on Thursday as the dollar fell after it jumped to this year’s new high while the Federal Reserve kept the interest rate unchanged.
Gold futures for June delivery on the Comex division of the New York Mercantile Exchange was up $4.5, or 0.34%, to $1,310.2 a troy ounce by 12:52AM ET (04:52 GMT).
The US Dollar Index that tracks the greenback against a basket of six major currencies last stood at 92.39, down 0.22%. The greenback reached this year’s new high overnight at 92.66, then lost its steam in the morning.
Meanwhile, the Fed kept the interest rate unchanged at 1.5% to 1.75%, as widely expected. It also said inflation is moving higher, close to its target.
Dollar-denominated assets such as gold are sensitive to moves in the dollar – a fall in the dollar makes gold less expensive for holders of foreign currency and thus increases demand for the precious metal.
Investors’ attention now turn to the much-awaited US-China trade talks, which is scheduled to kick off on Thursday, although a breakthrough deal is viewed as highly unlikely.
In other precious metal trade, silver futures gain 0.43% to $16.445 a troy ounce, and platinum futures edged up 0.11% to $896.50 an ounce.