Gold prices finish higher ahead of Fed rate decision

Gold prices maintained their uptrend at settlement today, May 3, buoyed by a weaker US dollar ahead of the Federal Reserve's May decision on monetary policy, amid growing forecasts for a quarter-point rate hike.

Later today, the US central bank’s rate-setting committee is due to conclude a two-day meeting on the path of monetary policy.

All eyes are on Fed Chairman Jerome Powell's remarks during today’s post-meeting press conference, where he is widely projected to signal a temporary halt in the 14-month policy tightening cycle.

Elsewhere, private payrolls rose 296,000 in April, marking the highest monthly uptick since July 2022, following a revised 142,000 hike in March. despite the Federal Reserve's efforts to combat inflation, according to figures published today by ADP Research Institute.

In terms of trading, gold for June delivery advanced 0.70%, or $13.70, to close at $2,037 an ounce.

In addition, the US dollar index, which gauges the greenback's strength against a basket of six currencies, plummeted 0.60% to 101.40 points at 8:42 pm Makkah time.