Gold prices edge away from record highs

Gold prices fell on Wednesday even as the dollar lost ground against most major rivals, with investors taking a breath and collecting profits after a string of record highs.

Fed Chair Jerome Powell said in a symposium earlier this week that inflation has stiffened and held its place during the first quarter, raising doubts about the prospects of interest rate cuts in 2024.

Powell added that it’s clear that recent inflation data didn’t give the Fed enough confidence that inflation is heading towards the target, and it could take longer than expected.

He said recent data showed strong economic growth and labor momentum, but little progress in bringing inflation towards 2%. 

Separately, the International Monetary Fund raised its global growth forecast by 0.1% to 3.2%, while expecting the US economy to grow by 2.7% this year. 

The IMF expects the US to register an annual growth rate of 2.7%, up from 0.6% in latest forecasts. 

Otherwise, the dollar index fell 0.3% as of 18:14 GMT to 105.8, with a session-high at 106.4, and a low at 105.8. 

Gold spot prices fell 0.6% as of 18:15 GMT, or $14.60 to $2393 an ounce, after surpassing $2400 for the first time ever yesterday.