Gold prices rose on Thursday, snapping a two-day losing streak, as investors sought safety amid renewed geopolitical tensions and expectations of further U.S. interest rate cuts.
Spot gold was up 0.6% at $4,119.54 per ounce by 07:20 GMT, after falling sharply earlier in the week. U.S. gold futures also advanced.
The metal gained support after reports that the United States is weighing new export restrictions on China involving American-made software, raising concerns about a fresh flare-up in trade hostilities. However, sentiment was tempered after President Donald Trump said he plans to meet Chinese President Xi Jinping, suggesting potential dialogue between the two sides.
Gold also drew strength from Washington’s new sanctions on Russia, imposed after a planned Trump–Putin summit was postponed following Moscow’s rejection of a Ukraine ceasefire proposal. The move added to broader safe-haven buying across commodities and currencies.
Meanwhile, expectations that the Federal Reserve will cut interest rates twice more before the end of the year continued to support bullion. Lower rates typically reduce the opportunity cost of holding non-yielding assets such as gold.
Despite the rebound, gold remains about 6% below its recent peak, with investors taking profits after repeated record highs. The metal suffered its steepest weekly loss in more than five years earlier this week amid a stronger dollar and higher bond yields.
Markets now turn their attention to upcoming U.S. inflation data, which could offer further clues on the Fed’s policy path and near-term momentum for the precious metal.
