Gold rises as Powell sets a cautiously optimistic tone on his second day of testimony to lawmakers in Washington. Although he did not state when the Fed would propose to cut interest rates, he indicated it might be soon. Market-based gauges continue to show a high probability of a rate cut in September – a positive for Gold. Gold trades up almost half a percent in the $2,380s on Thursday as markets continue to foresee interest-rate cuts coming down the track.
Gold buoyed by central bank buying Gold makes further gains on Thursday due to the emergence of data showing central banks around the world are still hoarding Gold despite the news that the largest consumer, the People’s Bank of China , has ceased Gold purchases for two months running in June.