Gold prices climbed on Thursday in Asia. Risk sentiment remained weak, while rate cut expectations also provided continuing support.
Gold futures for August delivery, traded on the Comex division of the New York Mercantile Exchange, were up 0.2% at $1,339.95 per ounce by 1:40 AM ET (05:40 GMT).
“Today, global equities are weaker, there is some safe-haven buying, and buying ahead of the U.S. Fed meeting next week,” said Bob Haberkorn, senior market strategist at RJO Futures, in a Reuters report.
“If the Fed cuts rates in June, you’re going to see some substantial gains here in the precious metals market … People are trying to get ahead of that and add some gold to their portfolio.”
The Federal Reserve is widely expected to keep rates unchanged at its next meeting due on June 19, but traders have been speculating on the possibility of the central bank cutting rates before the end of this year due to slowing inflation.
Expectations for a rate cut this year also rose last week after a number of Fed officials, including Chairman Jerome Powell, hinted they were open to easing monetary policy.
Investor sentiment also took a hit this week after U.S. President Donald Trump said a trade deal would not be signed until China returns to terms agreed earlier this year.
The U.S. stocks snapped a seven-day winning streak, while Asian stocks also fell today. Mass protests in Hong Kong over a planned bill that would allow extradition to Mainland China were also cited as a headwind for Hong Kong stocks today, which fell as much as 1.6% in the morning.
