LONDON: Gold reversed course to jump nearly 1 per cent on Wednesday after Federal Reserve Chairman Jerome Powell highlighted risks to the US economy and bolstered expectations of an interest rate cut later this month.
Spot gold was up 0.8pc to $1,409.36 per ounce at 1303 GMT, reversing a decline earlier in the session.
Meanwhile, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.22pc to 794.08 tonnes on Tuesday from 795.80 tonnes on Monday.
On the trade front, White House economic adviser Larry Kudlow said US and Chinese trade officials held a “constructive” phone conversation on Tuesday, marking a new round of talks after the world’s two largest economies agreed to a truce in a year-long trade war.
Among other precious metals, silver gained 1.1pc to $15.26 per ounce, and palladium was up 2.1pc at $1,578.69. Platinum rose 2.2pc to $823.72 an ounce.
Published in Dawn, July 11th, 2019