Gold futures prices today rallied the most in five weeks, as Federal Reserve Chair Janet signaled it will take a slow approach to raising interest rates.
On the Comex, gold futures delivery in August touched an intraday peak of $1,198.70 a troy ounce, the most since June 1.
Bloomberg Dollar Spot Index declined about a month low after the Fed on Wednesday cut its long-term projections for US borrowing costs, while maintaining a forecast for the benchmark rate to rise by year-end.
The central bank has maintained its benchmark interest rate near zero percent, a record low since December 2008, while regulators to loosen monetary policy to boost the economy. The metal rose to $ 1203.90, its highest level since June 1.
The Labor Department said US consumer prices rose 0.4% last month, below forecasts for a 0.5% increase. Year after year, consumer prices remained stable in May, in line with the expectations.
Consumer prices, excluding the costs of food and energy costs, increased 0.1% in May, expectations of an increase of 0.2% missing. The core CPI was elevated by an annualized rate of 1.7% in May, compared with 1.8% in April.
A separate report showed that the number of individuals who filed for unemployment benefits last week fell on 12000-267000 total of 279,000 the previous week. Analysts expected initial unemployment claims to fall to 2000-275000 last week.
The greenback was down as a report showing inflation far below the Fed’s objectives, underlying why politicians on the Wednesday reduced long-term projections for increases in interest rates. The highest rates in halting the appeal of gold because the metal does not pay interest or provide returns as other assets as stocks and bonds.
In morning trade on Thursday, Gold futures prices on MCX were trading higher. MCX Gold October contract was trading at Rs 27,180 up Rs 62, or 0.23 percent.
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