Investing.com - Gold rose on Thursday in Asia after the U.S. Federal Reserve indicated that it’s preparing to cut interest rates despite a strong U.S. jobs report released last week.
Gold futures for August delivery, traded on the Comex division of the New York Mercantile Exchange, were up 1% to $1,426.05 by 11:57 PM ET (03:57 GMT).
Fed chairman Jerome Powell said overnight that the central bank “will act as appropriate” to counter slowing business investments and growing economic uncertainties.
Gold is now trading near a six-year high on expectations that the Fed will cut rates this month, which will boost the appeal of non-interest-bearing assets.
Uncertainties surrounding Sino-U.S. trade war and Brexit were also cited as supporting the safe-haven metal.
“Although there will be a few bumps on the way given the level of skepticism in the first gold rally cycle, we think there will be an even greater rush for gold in the coming weeks and months,” Stephen Innes, managing partner at Vanguard Markets Pte, said in a note cited by Bloomberg.
“So gold prices could stay on an upward path as central banks pivot to an easing stance, the U.S. dollar turns gradually weaker with a more dovish Fed and the burden of harmful yielding debt rises.”