Gold prices rise on comments by Fed chief

Gold prices are rising by 1.65% on the comments of the head of the US Federal Reserve System (FRS) Jerome Powell that the regulator excludes a 75 basis point increase in the discount rate, Report informs referring to the auction data.

The price of June futures for gold on the New York Comex rose by $32.08, or 1.72%, to $1,901.06 per troy ounce. July silver futures rose 3.66% to $23.218 an ounce.

The gold market sees strong gains on May 5 morning as investors appreciate Powell’s comments that the US Federal Reserve will not raise the discount rate by 75 basis points.

On May 4, the regulator raised the base interest rate to 0.75-1% per annum. The decision is in line with the expectations of most analysts.