Gold futures on the COMEX division of the New York Mercantile Exchange increased on Thursday as the U.S. dollar weakened. The most active gold contract for April delivery saw a rise of 0.32 percent, closing at 2,165.20 dollars per ounce.
During his testimony to the Senate Banking Committee, Federal Reserve Chair Jerome Powell indicated that the U.S. economy is experiencing strong growth. Powell mentioned the possibility of interest rate cuts this year, while emphasizing the need for more confidence in inflation reaching a sustainable level of 2 percent.
As Powell’s comments leaned towards a more dovish stance, gold continued to benefit. Economic data released on Thursday was relatively flat, with U.S. unemployment claims remaining steady at 217,000 for the week ending March 2. Additionally, the productivity of American workers in the fourth quarter showed no change from the initial report last month, remaining at a 3.2-percent annual rate.
The upcoming U.S. February jobs report, set to be released on Friday, is anticipated to provide further insights into the country’s economic status. In parallel to gold, silver for May delivery also experienced an increase, rising by 0.35 percent to close at 24.578 dollars per ounce.
Platinum for April delivery followed the trend, with a rise of 0.98 percent to close at 923.40 dollars per ounce. The overall market response to Powell’s testimony and the upcoming jobs report signals a cautious yet optimistic approach towards the economy’s performance and the potential for future monetary policy adjustments.
