Gold prices jumped 2% on Thursday (December 30th), driven by a weaker dollar following the Fed's interest rate cut and as investors remained uncertain about the outcome of a trade deal between the presidents of the world's two largest economies.
Spot gold prices rose 1.9% to $4,004.75 per ounce at 09:18 GMT. US gold futures for December delivery fell 0.4% to $4,018.30 per ounce.
"Gold prices appear to be strengthening as investors digest the outcome of the Trump-Xi meeting and the Fed's decision to cut interest rates for the second time this year," said Lukman Otunuga, senior research analyst at FXTM.
The US central bank cut its benchmark interest rate by 25 basis points on Wednesday, bringing its overnight benchmark interest rate to its target range of 3.75%–4.00%. "Regarding monetary policy, traders still price in a 70% probability of a December interest rate cut, even though Powell has sought to cool expectations around further rate cuts," he added.
Fed Chairman Jerome Powell said officials are struggling to reach a consensus on what monetary policy will entail and warned that the market should not assume another rate cut in December. Non-yielding gold thrives in low-interest rates and during times of economic uncertainty.
Meanwhile, US President Donald Trump said he had reached a deal to lower tariffs on China in exchange for Beijing resuming purchases of US soybeans, maintaining the flow of rare earth exports, and cracking down on illicit fentanyl trade.
China itself agreed to delay implementing the latest round of rare earth export controls, but previous restrictions on critical minerals that have disrupted global trade remain in place.
Trump's remarks came after face-to-face talks with Xi in Busan, South Korea, marking the end of his brief trip to Asia, during which he also praised trade breakthroughs with South Korea, Japan, and Southeast Asian nations.
Elsewhere, spot silver rose 1.4% to $48.22 per ounce, platinum rose 2% to $1,616.20, and palladium rose 2.9% to $1,441.24. (alg)
Source: Reuters
Gold prices briefly caused a stir after hitting a new record, but then slowed. The main trigger: US President Donald Trump withheld the threat of tariffs on Europe and claimed there was a "framework" ...
Gold prices hit another record high, while silver held near its all-time high. This rise was driven by two major factors: the escalating Greenland crisis and turmoil in the Japanese government debt ma...
Gold prices remained near all-time highs on Tuesday, hovering around $4,670 per ounce. Demand for safe haven assets remained strong as US-European trade tensions escalated, prompting investors to refr...
Gold and silver hit new records after US President Donald Trump threatened to impose tariffs on eight European countries that oppose his Greenland plan. This situation immediately pushed investors int...
Gold price rises on Friday, poised to end with weekly gains of nearly 4% as an employment report in the US was mixed, with the economy adding fewer jobs than projected. Still, the Unemployment Rate ti...
Gold prices briefly caused a stir after hitting a new record, but then slowed. The main trigger: US President Donald Trump withheld the threat of tariffs on Europe and claimed there was a "framework" for a future agreement on Greenland. This calmer...
Oil prices were little changed in Asian trading on Thursday after US President Donald Trump backed down from a threat to impose tariffs on European countries over Greenland. This decision helped ease geopolitical tensions and improve market...
The Nikkei 225 Index climbed 1.73% to close at 53,689, while the broader Topix Index rose 0.74% to 3,616 on Thursday, snapping a five-day losing streak as Japanese shares were lifted by a strong rally in chip and artificial intelligence related...