Gold prices rose in European trading on Thursday, extending gains for a second consecutive session as the metal rebounded from a one-week low. The recovery pushed gold swiftly back above the $3,300 per ounce level, supported by weakness in the US dollar across currency markets.
Expectations for a Federal Reserve rate cut in September strengthened after the release of the central bank’s latest meeting minutes, which reinforced speculation about a shift toward monetary easing before the end of the year.
The Price
Gold prices climbed by 0.5% to $3,329.54, up from the opening level of $3,313.55, after touching an intraday low at $3,313.55.
On Wednesday, gold settled 0.4% higher, marking its first gain in three sessions, after hitting a one-week low earlier in the day at $3,282.73 per ounce.
US Dollar
The US Dollar Index fell by more than 0.2% on Thursday, recording its second straight session of losses. The index retreated from a two-week high of 97.84, reflecting continued pressure on the greenback against both major and minor currencies.
Trump’s latest round of tariffs failed to rattle global markets, except in Brazil, where the threat of a 50% tax sent the Brazilian real down as much as 2.8% overnight.
Fed Rate Outlook
The minutes from the Fed’s most recent meeting revealed that most policymakers view interest rate cuts as appropriate later this year.
Following the release, CME Group’s FedWatch Tool showed a rise in the probability of a 25 basis point cut in July from 5% to 8%, while the odds of holding rates steady slipped from 95% to 92%.
Expectations for a 25 basis point rate cut in September jumped from 62% to 72%, while the likelihood of no change dropped from 38% to 28%.
Gold Outlook
Matt Simpson, senior analyst at City Index, commented: “It seems that the market’s reaction to tariff headlines is fading with each new development. We’ve reached tariff fatigue, and traders need a fresh catalyst to wake volatility from its slumber.”
SPDR Gold Holdings
Holdings at the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose by approximately 0.86 metric tons on Wednesday, bringing the total to 947.37 metric tons. That marked a rebound from Tuesday’s 946.51 metric tons, the lowest level since June 17.
