Gold prices moved higher on Thursday, approaching the key US$3,400 level once again, amid a softer United States dollar after the Federal Reserve expressed caution over the economic outlook.
By 3:20 pm AEST (5:20 am GMT) spot gold prices were up by $7.74 or 0.2% to US$3,372.88 per ounce.
The latest rebound in gold was driven by renewed pressure on the U.S. dollar, as the Federal Reserve left interest rates unchanged in a range of 4.25% to 4.50%, citing increased risks of inflation and unemployment.
In its statement, the central bank warned of elevated economic uncertainties, particularly amid inconsistent U.S. trade policies.
Sentiment was further supported after the People's Bank of China eased monetary policies to stimulate its economy.
Meanwhile, U.S. President Donald Trump may unveil a trade deal framework later Thursday. Posting on Truth Social, the President said, “Big News Conference tomorrow morning at 10:00 A.M., The Oval Office, concerning a MAJOR TRADE DEAL WITH REPRESENTATIVES OF A BIG, AND HIGHLY RESPECTED, COUNTRY. THE FIRST OF MANY!!!”
Despite potential progress on the trade front, the U.S. dollar failed to gain traction, remaining under pressure due to the Fed’s cautious tone.
On the geopolitical front, gold continued to attract inflows amid ongoing tensions across several regions. Ukraine’s air force reported Russian airstrikes using guided bombs in the Sumy region early Thursday - just hours after a ceasefire declared by Russian President Vladimir Putin had taken effect.
In the Middle East, Oman announced that it had mediated a truce between the United States and Yemen’s Houthi rebels, with both sides agreeing to refrain from further attacks on each other.
In South Asia, tensions escalated after Indian armed forces launched missile strikes on nine militant targets in Pakistan and Pakistan-Occupied Kashmir (PoK).
