Gold Drops to Near $1280 After Fed Boosts U.S. Economy Assessment

Gold extended losses as investors weighed the outlook for higher U.S. interest rates after the Federal Reserve boosted its assessment of the economy and labor market, while acknowledging global risks.

Bullion for immediate delivery fell as much as 0.5 percent to $1,278.27 an ounce and was at $1,279.91 by 10:23 a.m. Singapore time, according to Bloomberg generic pricing. Prices dropped 0.6 percent on Wednesday. Gold for April delivery lost 0.5 percent to $1,280.30 an ounce on the Comex.

The Federal Open Market Committee after a meeting in Washington on Wednesday described the economic expansion as “solid,” an improvement over the “moderate” performance it saw in December. It substituted “strong” for “solid” in its evaluation of job gains and said it will take into account readings on international developments as it decides how long to keep key rates near zero.

Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.