Gold has firmed on in the $1,500s again, supported by Fed/trade headlines
|- Gold is consolidating ahead of critical $1,520s.
- Less optimistic trade headlines have also supported the advance.
Gold is consolidating below the key $1,520s, over 1% higher on the day mind, and benefitting from a mixed reaction to the Federal Reserve's hawkish interest rate cut. The price of Gold has travelled between the $1,494.01 lows and $1,514.28, the high for the day.
Fed and trade headlines
Indeed, Gold held surprisingly strong through the FOMC's "hawkish cut", bursting through the $1,500/oz level in the aftermath.
"While Fed Chair Powell stated that "monetary policy is in a good place" and that it would require a "material reassessment" of the economic outlook for the Fed to revisit the appropriate path for rates, essentially communicating the policy rate is likely to remain steady for the foreseeable future, markets seemed to take a liking to the apparent 2020 optionality, data dependence and persistent inflation worries," analysts at TD Securities explained.
However, the less optimistic trade headlines have also supported the advance on Thursday. Bloomberg reports that Chinese officials are casting doubts about reaching a comprehensive long-term trade deal with the U.S. even as the two sides get close to signing a “phase one” agreement.
"In private conversations with visitors to Beijing and other interlocutors in recent weeks, Chinese officials have warned they won’t budge on the thorniest issues, according to people familiar with the matter. They remain concerned about President Donald Trump’s impulsive nature and the risk he may back out of even the limited deal both sides say they want to sign in the coming weeks."
Gold levels
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