Mumbai, 2 May (Commoditiescontrol): Gold prices gained on Thursday after the U.S. Federal Reserve kept its key interest rate steady, as expected, and indicated that it is still leaning toward eventual rate cuts.
Spot gold was up 0.3% at $2,323.66 per ounce, after climbing more than 1% in the previous session. U.S. gold futures rose 1% to $2,333.30 per ounce.
The Fed held interest rates steady on Wednesday, but put a red flag on recent disappointing inflation readings that could make those rate cuts a while in coming.
Chair Jerome Powell said his forecast remained for inflation to fall over the course of the year, but that "my confidence in that is lower than it was."
U.S. short-term interest-rate futures rose after the Fed meeting, as traders added to bets that the U.S. central bank will deliver at least one rate cut this year. Lower rates increase the appeal of holding non-yielding bullion.
Investors are now looking forward to the U.S. nonfarm payrolls report, which is due on Friday.
The ADP Employment report on Wednesday showed that U.S. private payrolls increased more than expected in April while data for the prior month was revised higher.
A report from the U.S. Labor Department showed that U.S. job openings fell to a three-year low in March, while the number of people quitting their jobs declined.
Spot silver rose 0.6% to $26.79 per ounce, platinum gained nearly 1% to $958.95 and palladium advanced 0.8% to $956.31.
(By Commoditiescontrol Bureau: 09820130172)
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