Gold gains on Fed rate cut hopes

By Jeff Davies

Gold prices advanced on Thursday as demand for the safe-haven metal rose on expectations of an interest rate cut by the U.S. Federal Reserve following soft inflation data, and on escalating trade tensions between the world’s top two economies.

Spot gold was up 0.3% at $1,336.45 per ounce, as of 0309 GMT.

U.S. gold futures were also 0.3% higher, at $1,340.10 an ounce.

“We can see strong support at $1,330 for gold, and the metal looks to trade upside with expectations of lower interest rates,” said Peter Fung, head of dealing at Wing Fung Precious Metals.

“Also, we are still worried about the (U.S.-China) trade war and people are still looking at gold as a safe haven, ” he said.

Meanwhile, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.5% to 759.70 tonnes on Wednesday from 756.18 tonnes on Tuesday.

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