Investing.com - Gold prices jumped on Thursday in Asia after the U.S. Federal Reserve kept the door open for an interest rate cut later this year.
Gold futures for August delivery, traded on the Comex division of the New York Mercantile Exchange, were up 2.6% at $1,383.50 per ounce by 12:45 AM ET (04:45 GMT).
On Wednesday the Fed kept its benchmark rate unchanged, but signalled it is prepared cut rates amid mounting risks to the economy from slowing inflation and global trade tensions.
"The main question is no longer if the Fed will cut rates in July, but whether the easing will be by 25 or 50 basis points,” said Daisuke Karakama, chief market economist at Mizuho Bank, in a Reuters report.
The U.S. dollar index that tracks the greenback against a basket of other currencies was down 0.2% to 96.385.
Since the beginning of June, gold has only settled down twice as investors piled into the precious metal to hedge against a weakening of the dollar should the Fed tilt towards a rate cut.