Gold continues to rise supported by interest rate cuts and a weak dollar

Gold gained new ground today, reinforcing its upward trend after the U.S. Federal Reserve's decision to cut interest rates, amid ongoing uncertainty in the markets regarding the outcomes of trade negotiations between the United States and China.

The price of the precious metal rose by 1.49% in spot transactions to reach $3994.35 per ounce by 12:35 PM Moscow time, while U.S. gold futures for December delivery increased by 0.21% to record $4009.30 per ounce.

Lukman Otunuga, Senior Research Analyst at FXTM, stated that “gold continues to rise as investors react to the results of the meeting between Presidents Trump and Xi, and the Fed's decision to cut interest rates for the second time this year.”

The U.S. Federal Reserve had cut the interest rate yesterday, Wednesday, by 25 basis points from 4.25% to 4%, in a move aimed at supporting growth amid signs of a potential economic slowdown. Fed Chairman Jerome Powell hinted that this cut may be the last one this year.

Investors in global markets are awaiting upcoming developments in U.S. monetary policy, alongside the course of trade negotiations between Washington and Beijing, to determine the direction of gold in the near term.