Gold prices rise after Fed rate decision, ahead of US economic data release

Gold prices advanced today, July 27, as the US dollar stabilized after the Federal Reserve raised interest rates to a 22-year high, and ahead of the release of some US economic readings and the European Central Bank’s (ECB) policy decision.

Yesterday, the Fed decided on a 25-basis-point interest rate hike, in line with market expectations. Fed Chairman Jerome Powell indicated that the decision to raise or hold rates in September will depend on economic data.

Data on US initial jobless claims are scheduled to be out later today, amid forecasts for an increase to 234,000. The US GDP reading for the second quarter is also due today, which could show the economy growing by 1.8%.

Bullion for August delivery climbed by 0.31% to $1,976.10 an ounce, with spot prices also up 0.2%, or $4.01, to stand at $1,976.08 per ounce at 9:11 am Makkah time.

Silver futures for September delivery, likewise, rose 0.74% at $25.16 an ounce, in tandem with a 0.36% uptick in platinum spot prices to reach $970.75 per ounce.

Meanwhile, the US dollar index, which measures the performance of the US currency against a basket of six major currencies, held ground at 100.94 points.