Gold prices reach historical high after Fed’s meeting

Gold prices on May 4 morning exceeded $2,052 per troy ounce. The indicator approached a historical high after the meeting of the US Federal Reserve System (FRS), reported from the auction data.

The price of June gold futures on the New York Comex exchange rose by $15.75 (0.77%) to $2,052.85 per troy ounce. This is the highest price since the all-time high in 2020, when it reached $2,089 per troy ounce. July futures for silver rose 1.38% to $26.038 an ounce.

Gold is rising after the results of the Fed meeting. On May 3, the regulator expectedly raised the discount rate by 25 basis points to 5-5.25%. However, the Fed signaled that the year-long cycle of raising the discount rate could probably be paused to assess the economic situation in the US.

This decision led to a weakening of the dollar and a decrease in the yield of US government bonds, which are an alternative to the precious metal as safe-haven assets.

The dollar fell against the euro and the yen, its index (the exchange rate against a basket of currencies of six countries that are US trading partners) fell by 0.23%, which makes gold more profitable to buy in another currency, and the yield on ten-year government bonds (US Treasuries) fell to 3.334 % from the last close of 3.403%.





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