Gold enhances gains amid bets on halting US interest increases

Gold prices consolidated their gains today, Thursday, after the Federal Reserve (the US central bank) indicated that the end of the monetary tightening cycle may be on the horizon.

According to Reuters, gold rose in the spot market by 0.4 percent to $1976.80 an ounce by 0910 GMT, while US gold futures rose 1.5 percent to $1979.20.

The dollar index fell 0.2 percent, which increases the attractiveness of gold to buyers in other currencies

Fed policy makers believe that beating inflation may require one more rate hike this year. But Federal Reserve Chairman Jerome Powell said in a press conference that the bank will take “adequate” measures to bring inflation down to 2 percent and raise interest rates to higher levels if necessary.

On Monday, gold recorded the highest level in a year, exceeding $ 2,000 an ounce, with increasing demand for it as a safe haven due to the banking sector turmoil, but it gave up some of its gains after the Credit Suisse bailout deal.

As for other precious metals, silver in the spot market fell 0.8 percent to $ 22.85 an ounce, while platinum increased 1.1 percent to $ 988.23, and palladium rose 0.9 percent to $ 1464.01.