Gold still has prospects to rise further analyst
ECB39;s interest rates decision expected at 1415 CET

May 4 Reuters Gold took a breather on Thursday after accelerating to a near record high as the U.S. Federal Reserve steered clear of hinting at further rate hikes, with elevated economic risks seen fuelling robust demand for the safehaven metal.

Spot gold was down 0.3 to 2,033.99 per ounce by 0853 GMT after earlier climbing to 2,072.19, just shy of a record high of 2,072.49 hit in 2020, with analysts attributing the slight pullback to profittaking.

U.S. gold futures rose 0.2 to 2,041.40.

In addition to heightened geopolitical tensions, the banking crisis and the U.S. debt ceiling debacle may add underlying support, said Saxo Bank analyst Ole Hansen.

The Fed raised rates by 25 basis points, but in doing so dropped from its policy statement language saying it anticipates further rate increases would be needed.

However, Fed Chair Jerome Powell in his press conference said inflation remains the chief concern, and the U.S. economy had a greater chance of avoiding a recession, but would not rule out a mild one.

But the debt ceiling debacle will rumble on and together with longterm sticky inflation at a higher than current priced in level we see the prospect for higher gold prices still, Hansen added.

Economic uncertainties and lower rates boost demand for the zeroyield bullion.

Markets now see a 98.5 chance of a pause in rate hikes in June , and analysts said…