Gold rises following Fed hikes rates

By Xu JingUnreguser

CHICAGO, March 23 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange rose on Thursday, after the Federal Reserve raised rate by 25 basis points on Wednesday and signaled one more rate increase this year.

The most active gold contract for April delivery rose 46.30 U.S. dollars, or 2.37 percent, to close at 1,995.90 dollars per ounce.

Gold futures settled at the highest finish level since March 10, 2022.

Though Federal Reserve Chairman Jerome Powell pushed back on market expectations of a rate cut this year, the market is focusing on the Fed's less hawkish adjustment to the statement, which suggests the central bank may soon end the hiking cycle.

U.S. Treasury Secretary Janet Yellen said during a hearing before a Senate subcommittee Wednesday that U.S. regulators aren't looking to provide "blanket" deposit insurance to stabilize the U.S. banking system without working with lawmakers, and that the heads of the recently failed American lender should be held accountable.

"I have not considered or discussed anything having to do with blanket insurance or guarantees of deposits," Yellen said.

Economic data released on Thursday are mixed. The U.S. Commerce Department reported that U.S. new home sales rose 1.1 percent to a seasonally adjusted annual rate of 640,000 units in February, the highest level since August.

The U.S. Labor Department reported that U.S. initial jobless claims fell by 1,000 to 191,000 in the week ending March 18.

Silver for May delivery rose 47 cents, or 2.06 percent, to close at 23.256 dollars per ounce. Platinum for April delivery rose 5.90 dollars, or 0.60 percent, to close at 992.90 dollars per ounce.

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