Gold prices increased on Thursday, supported by a weaker U.S. dollar and the Federal Reserve’s interest rate cut, while investors remained cautious about the outcome of the U.S.-China trade agreement.
اضافة اعلان
Spot gold rose 0.9% to $1,964.09 per ounce by 06:42 GMT, while U.S. December gold futures fell 0.6% to $1,977.10 per ounce.
The Dollar Index declined 0.2% after reaching a two-week high against rival currencies on Wednesday, making gold more attractive for holders of other currencies.
Kyle Roda, an analyst at Capital.com, said:
“There is no real catalyst behind this rise other than a small technical rebound. Many factors went against gold this week. The anticipated U.S.-China trade deal reduces the impact of geopolitical factors as a price driver.”
He added:
“The Fed’s hawkish stance and reduced expectations of a further cut in December exert downward pressure on gold. I think gold may continue to decline in the short term, but the long-term trend remains upward.”
The U.S. Federal Reserve cut its benchmark interest rate by 0.25 percentage points on Wednesday for the second time this year, bringing the rate to a range of 3.75%–4.00%.
Fed Chair Jerome Powell noted that policymakers face challenges in reaching a consensus on next steps, cautioning markets not to assume another rate cut will occur in December.
Gold, which does not generate yield, typically thrives in a low-interest-rate environment and during periods of economic uncertainty.
Meanwhile, U.S. President Donald Trump announced a tariff reduction agreement with China, lowering tariffs from 57% to 47% in exchange for resuming U.S. soybean purchases, continued rare earth exports, and tighter controls on illicit fentanyl trade.
Trump’s comments followed his meeting with Chinese President Xi Jinping in Busan, South Korea, concluding his brief Asian tour, which also included discussions on trade breakthroughs with South Korea, Japan, and several Southeast Asian countries.
In other precious metals markets, spot silver rose 0.2% to $47.65 per ounce, platinum increased 0.6% to $1,595.14, and palladium climbed 1.3% to $1,418.65 per ounce.
