- Gold and silver prices surged after Fed's Waller hinted at holding rates if inflation improves
- Spot gold rose 2.48% to $4,496.9 and spot silver gained 2.73% to about $67.1 per ounce
- MCX gold futures jumped 2.3% to Rs 1,55,450 per 10 grams; silver futures rose 2.84% to Rs 2,36,470/kg
Gold and silver prices surged on Thursday, September 3 after Federal Reserve Christopher Waller indicated towards holding rates if inflation is improving.
Spot gold rose 2.48% or $108.8 to $4,496.9 on Thursday, while spot silver gained 2.73% or $1.79 to around $67.1/oz.
Bullion prices climed in in India as well as MCX gold September futures contract advanced 2.3% or Rs 3,497 to Rs 1,55,450 per 10 grams, while MCX silver September futures contract jumped 2.84% or Rs 6,527 to Rs 2,36,470 per kg.
Fed Governor Waller said that the decision on interest rates will be “heavily influenced” by August inflation data due next week. "If there is continued progress toward our 2% goal, then I am willing to support holding the policy rate at its current level,” Waller said at an event hosted by Reuters. “But if inflation comes in hot, I would consider a rate hike.”
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Calling the current policy as slightly restraining the economy, Waller noted, “It may not take much acceleration in inflation to nudge me into supporting tighter policy. If there is evidence that progress toward 2% inflation reversed in August, a small adjustment in our stance would help ensure that it resumes.”
Waller remained postive above price pressures that have been showing signs of improvement.
“While inflation remains meaningfully above the Federal Open Market Committee's 2% goal, recent data suggest we are finally seeing some signs of disinflation,” he said.
Federal Reserve officials are set to meet on September 15 and September 16 in Washington after holding rates for five straight meetings this year.
Waller's latest remarks come a week after Federal Reserve Chair Kevin Warsh at the annual economic symposium in Jackson Hole said that the officials have “work to do” if they are not confident underlying inflation is moving toward the Fed's 2% goal.
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