Gold prices rose notably on Thursday, a day after the U.S. Federal Reserve cut interest rates for the third time this year, as widely expected, citing weak inflation outlook and global growth concerns.
Spot gold climbed 0.65 percent to $1,505.52 per ounce and remained on track for a gain of nearly 2 percent this month. U.S. gold futures were up 0.75 percent at $1,507.90 per ounce.
After cutting the benchmark funds rate by 25 basis points, Federal Reserve officials said they’d need to see a marked and persistent rise in inflation before hiking borrowing costs in the future.
Meanwhile, the Bank of Japan today maintained its policy rates but signaled further monetary easing going forward.
The central bank said short and long-term interest rates are expected to remain at their current or lower levels as long as it is necessary to achieve its price stability target.
The precious metal is also benefiting from growth concerns after official data showed that China’s factory activity slipped to an eight month-low in October.
The manufacturing PMI fell to 49.3 from 49.8 a month ago. China’s service sector also logged weaker growth in October, with the corresponding index coming in at 52.8, down from 53.7 in September
On the trade front, Chile has cancelled the Asia-Pacific Economic Cooperation summit scheduled to be held in Santiago in mid-November, citing violent protests across the country.
U.S. President Donald Trump and Chinese President Xi Jinping were due to meet at the summit to discuss and possibly sign phase one of a U.S.-China trade deal.
The material has been provided by InstaForex Company – www.instaforex.com