Gold prices steadied during Thursday's Asian trade, following a sharp correction from record highs, as traders assessed shifting expectations on United States interest rates and geopolitical tensions.
Spot gold was down just $1.50, or 0.04%, at $3,734.89 per ounce by 3:20 pm AEST (5:20 am GMT), holding above Wednesday’s low after retreating from a peak of US$3,791.
The pause came as the U.S. dollar extended gains to nine-day highs, fuelled by a repricing of Federal Reserve policy expectations.
Still, safe-haven support remained in play as the Kremlin pushed back against U.S. President Donald Trump’s latest remarks on the Russia-Ukraine war, and Ukraine’s President Volodymyr Zelenskyy warned at the UN General Assembly that Russian President Vladimir Putin would prolong the conflict if unchecked.
Zelenskyy also urged Western allies to ensure that Moldova, which borders Ukraine and EU-member Romania, does not fall under Russian influence.
His warning followed incidents last week in which Estonia and Poland requested NATO consultations after separate airspace violations by Russia, while Romania also reported breaches by Russian drones.
Looking ahead, investors will turn to upcoming U.S. data, including durable goods orders, jobless claims and existing home sales, ahead of Friday’s release of the Fed’s preferred inflation gauge, the core personal consumption expenditures index.
Additional speeches from Fed officials in the North American session are also expected to guide market sentiment.
