Focus now shifts to US President Trump’s meeting with Chinese leader Xi Jinping in South Korea later in the day
[BENGALURU] Gold prices edged higher on Thursday (Oct 30), as a slight pullback in the US dollar and a widely expected quarter percentage point rate cut from the US Federal Reserve lifted demand.
Spot gold was up 0.4 per cent at US$3,942.97 per ounce, as at 8.50 am. US gold futures for December delivery slipped 1.1 per cent to US$3,955 per ounce.
The US central bank cut interest rates by a quarter of a percentage point for the second time this year, bringing the benchmark overnight rate to a target range of 3.75 to 4 per cent.
Fed chair Jerome Powell said that officials are struggling to reach a consensus about what lies ahead for monetary policy and that financial markets should not assume another rate cut will happen at the end of the year.
Non-yielding gold thrives in a low-interest-rate environment and during economic uncertainties.
The US dollar index fell 0.2 per cent after hitting a two-week high against its rivals in the previous session, making gold less expensive for other currency holders.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Focus now shifts to US President Trump’s meeting with Chinese leader Xi Jinping in South Korea later in the day.
US negotiators have signalled they seek a return to a fragile trade war truce, but tensions remain high and longer-term economic irritants will likely persist between the geopolitical rivals.
Trump and South Korean President Lee Jae Myung finalised details of their fraught trade deal at a summit in South Korea, and the US president also sounded an optimistic note about a looming summit with China’s Xi Jinping.
SEE ALSO
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.28 per cent to 1,036.05 tonnes on Wednesday from 1,038.92 tonnes on Tuesday.
Elsewhere, spot silver gained 0.4 per cent to US$47.71 per ounce, platinum rose 0.6 per cent to US$1,594.90 and palladium climbed 0.8 per cent to US$1,411.51. REUTERS
