Gold prices remained steady on Wednesday as traders anticipated remarks from numerous U.S. Federal Reserve (Fed) officials throughout the week. Their comments were expected to provide insights into the potential timeline for the central bank to initiate interest rate cuts. Spot gold settled at $2035.12 per ounce by 01:31 GMT, representing a gain of over 0.5 percent from the previous session. Similarly, there was no change observed in the prices of U.S. gold futures, which held steady at $2051.20 per ounce.
Read more: Gold prices recover from dip as Powell counters rate cut expectations
On Tuesday, Fed officials stated that if the U.S. economy performs as expected, it may create conditions conducive to lower interest rates. However, they the battle against inflation is ongoing and that it may take time before the central bank decides to implement interest rate cuts, as highlighted by Fed Chair Jerome Powell in a Sunday interview.
Rising interest rates would increase the opportunity cost of acquiring gold, thereby reducing its attractiveness relative to other assets. At the same time, the dollar index and yields on the 10-year Treasury note declined, enhancing the appeal of gold for holders of other currencies.
In terms of other precious metals, silver experienced a 0.1 percent increase, reaching $22.41 per ounce, while platinum settled at $903.99. Conversely, palladium saw a 0.1 percent decline, reaching $949.83.
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