LONDON: Gold rose back above $1,500 a ounce on Thursday as the focus returned to global growth risks and Middle East tensions, helping bullion recover after the US Federal Reserve cut interest rates but gave mixed signals on any future easing.

Spot gold was up 0.6 per cent at $1,502.53 per ounce as of 1204 GMT, after falling on Wednesday to $1,484.16, a one-week low.

US gold futures dipped 0.4pc to $1,509.30 an ounce.“The short term could be a little bit challenging for gold. The market is stuck in the $1,512-$1,480 range and with a potential lack of bullish news, there is a risk we could see a deeper correction, but the overall bullish outlook for gold is still intact.” Earlier in the day, the Bank of Japan kept monetary policy steady as expected.

However, central banks around the world face increasing pressure to dole out monetary support as the US-China trade war hurts global growth.

Lower interest rates decrease the opportunity cost of holding non-yielding bullion and weigh on the dollar.

Meanwhile, the dollar slipped, giving up overnight gains. Silver gained 0.7pc to $17.87 an ounce, while platinum rose 0.4pc to $933.66. Palladium edged 0.1pc higher to $1,593.10.

Published in Dawn, September 20th, 2019