Gold rises slightly after US Federal Reserve meeting

Gold prices rose by more than 1% on February 2 morning, to around $1,970 per troy ounce, Report informs referring to the auction data.

The prices are buoyed by the weakening of the dollar after US Fed's meeting.

The price of April gold futures on the New York Comex rose $25.75, or 1.33%, to $1,968.55 a troy ounce. March silver futures rose 2.74% to $24.255 an ounce.

The dollar index (the exchange rate against a basket of currencies of six US trading partners) fell by 0.32% to 100.9 points. The depreciation of the dollar supports the value of gold, making it more affordable when buying in another currency.

On February 1, the Fed raised the base interest rate by 25 basis points to 4.5-4.75% per annum. Fed Chairperson Jerome Powell said at a press conference that the Fed is likely to continue raising rates to curb inflation. At the same time, he noted that the US economy, despite the deflationary measures, will continue to grow, and inflation may return to 2% without a significant slowdown in the economy.