Gold prices jump as investors assess Fed remarks

Gold prices closed in the green today, Jan. 19, following the release of economic data and amid continued statements by Federal Reserve officials.

Also today, the US hit the debt ceiling set by Congress, forcing the Treasury Department to start taking extraordinary measures to keep the government paying its bills until an agreement is reached to raise the maximum borrowing limit.

Latest data revealed that US initial jobless claims tumbled to the lowest level since September 2022 at 190,000 in the week ended Jan. 14.

Boston Fed President Susan Collins said the central bank would need to lift interest rates slightly above 5%. However, she signaled that the pace of monetary tightening could be pared down.

Upon settlement, gold for February delivery advanced 0.9%, or $16.90, to $1,923.90 an ounce.

The US dollar index, which gauges the greenback's strength against a basket of six currencies, plunged by 0.2% at 102.104 points at 9:49 pm Makkah time.