Gold futures finished higher on Wednesday, amid the softer than expected US inflation data for May gave room for Federal Reserve to interest rate cuts sooner. Lower interest rates are positive for non-yielding Gold as they reduce the opportunity cost of holding the asset. Softer bonds and dollar also kindled yellow metal buying. However, Fed meeting concluded at 18:00 GMT, after gold settlement affirmed that the US Central Bank not plans to change interest in the near term. Market anticipates only one rate cut in 2024 as compared to three projected in March.
Gold futures for August delivery rose by $28.20 or 1.2% to settle at $2,354.80 per ounce on the Comex division of the New York Mercantile. Spot gold down by $11.10 or 0.48% to $ 2,313.88 an ounce.