Mubasher: Gold traded above $1,500 per ounce on Thursday, despite risk-on sentiment was boosted by signs of an ease in the trade tensions between the US and China, while some investors locked in profits ahead of the European Central Bank’s (ECB) meeting, Reuters reported.
By 8:34 am GMT, spot gold rose by 0.54% to $1,505.31 per ounce, while US gold futures climbed by 0.58% to $1,511.90 per ounce.
Gold prices dropped by nearly 4% from a more than six-year peak of $1,557 per ounce reached 4 September, as re-ignited risk-taking appetite and more robust economic data weighed on safe-haven demand.
Nevertheless, the precious metal still hovers near $1,500, an indication “that there is still plenty of demand for the safe-haven asset on this dip in prices, which contrasts with the bullish euphoria elsewhere,” a note by OANDA analyst Jeffrey Halley was quoted by Reuters.
Meanwhile, US President Donald Trump’s tariff move helped mollify trade worries to some extent, according to in Singapore-based dealer GoldSilver Central’s managing director Brian Lan.
Washington and Beijing provided one another “goodwill” concessions, after US President Donald Trump postponed tariff hikes for $250 billion of Chinese products to 15 October instead of 1 October.
In the meantime, market focus is on the ECB meeting due later in the day, as investors will be looking for hints on the measures to be undertaken by the central bank to boost flagging growth amid Brexit uncertainties.
Moreover, the Federal Reserve’s next week meeting will be closely watched, where US policymakers are set to make a similar policy move.