Gold rises amid lower interest rates and gloomy U.S. recovery predictions

11.06.2020 - Korneychuk Evgeniya
Gold rises amid lower interest rates and gloomy U.S. recovery predictions

Gold prices rose earlier on Thursday in Asia, continuing gains from the previous sessions after the U.S. Federal Reserve decided on Wednesday to keep the benchmark rate near zero.

Gold futures gained 1.19% at $1,741.25 per ounce at 12:24 AM ET (05:24 GMT).

However, investor sentiment were left sour after the Fed’s quarterly forecast saw economic recovery from the COVID-19 pandemic to take till the end of 2020. Furthermore, they predicted that the GDP could shrink by 6.5% in 2020 and the unemployment rate could fall from May’s 13.3% to 9.3% in the last three months of the year.

U.S. Federal Reserve Chairman Jerome Powell reiterated that the central bank is committed to “do whatever we can, for as long as it takes,” after the meeting.

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