"Gold rose on Wednesday, snapping a three-day losing streak as investors bought the dip ahead of the Federal Reserve's policy announcement later in the day. After briefly touching USD 3,885 on Tuesday, its lowest level in nearly a month, bullion rebounded sharply and regained the USD 4,000 threshold, as traders positioned for the widely expected 25-basis-point rate cut. Market participants will focus on Fed Chair Jerome Powell's guidance regarding the pace of additional easing, with another reduction in December already priced in."
"Dovish remarks could further boost the precious metal. Expectations of continued policy easing helped offset the impact from the developments in US-China relations, as Presidents Donald Trump and Xi Jinping prepare to finalise a framework deal aimed at halting new tariffs and easing trade frictions. Meanwhile, persistent geopolitical risks continue to underpin gold's safe-haven appeal. Israel resumed strikes on Gaza amid renewed accusations of ceasefire violations, while Russia intensified attacks in Ukraine."
Gold rebounded above USD 4,000 after briefly touching USD 3,885, its lowest level in nearly a month. Investors bought the dip ahead of the Federal Reserve's policy announcement and widely expected 25-basis-point rate cut. Market participants anticipate guidance from Fed Chair Jerome Powell on the pace of additional easing, with another cut in December already priced in. Expectations of continued easing could boost bullion further and helped offset impacts from US-China developments toward a framework trade deal. Persistent geopolitical risks in Gaza and Ukraine underpinned gold's safe-haven appeal despite earlier profit-taking.
Read at London Business News | Londonlovesbusiness.com
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