Gold price stable after recovery above $2,300; interest rate fluctuations persist By Investing.com

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Investing.com — Gold prices stabilized in Asian trading after rebounding above a key support level on Thursday, although momentum in the yellow metal was stalled by continued expectations of longer interest rates in the US.

The yellow metal rallied in overnight trading after the Federal Reserve quashed expectations for further rate hikes, dragging the dollar lower and providing some relief for commodity prices.

But the Fed still signaled it was in no rush to cut interest rates – a trend that is expected to limit any major upside from gold.

was steady at $2,319.98 per ounce after falling below $2,300 earlier this week, while June expiration at 00:36 ET (04:36 GMT) hovered around $2,329.0 per ounce.

Fed sends mixed signals: Nonfarm payrolls awaited

The Fed remained steady on Wednesday, as widely expected.

But Chairman Jerome Powell gave somewhat mixed signals about the interest rate path in his speech after the meeting.

While Powell said slowing disinflation — especially toward the Fed’s 2% target — gave the bank little confidence to start cutting rates early. But Powell also said the bank has no plans to raise rates further.

This last comment caused some weakness in the , pushing it near a six-month high. The move provided some relief for metals prices, which posted steep losses ahead of the Fed meeting.

Still, the prospect of US interest rates staying high for longer has a negative impact on the outlook for gold prices, especially given that the yellow metal’s safe haven has also fallen in recent sessions.

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Other precious metals rose on Thursday after heavy losses earlier this week. rose 0.6% to $968.30 per ounce, while the price rose 0.3% to $26.825 per ounce.

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Copper prices remain stable below two-year highs

Among industrial metals, copper prices held steady near two-year highs as uncertainty over US yields halted a recent rally in the red metal.

on the London Metal Exchange rose 0.5% to $9,950.0 per tonne, while it fell 0.1% to $4.5648 per pound.

Both contracts remained well below two-year highs in April as markets waited for more signals on economic growth and demand.

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