The most recent bounce in XAUUSD reiterates spot gold's sharp ascent since the end of May and is reflected by the steep bullish trendline helping keep prices bid.
Spot gold rose 1.2% to $1,414.60 per ounce as of 2:20 pm ET (1820 GMT), having made its way to a high of $1,417.20 an ounce.
Most prominently, the Fed Chair stated that "it appears trade uncertainties and concerns about the global economy continue to weigh on economic outlook", adding that the Fed "will act as appropriate to sustain United States economic growth".
Uncertainty prompted some investors to unwind short positions against some heavily shorted currencies, such as the Australian dollar, which rose 0.2 per cent in early London trading.
Fed Chair Jerome Powell indicated on Thursday that a rate cut is likely at the Fed's next meeting as businesses slow investment due to trade disputes and a global growth slowdown.
Rep. Alexandria Ocasio-Cortez Wants to Dismantle Department of Homeland Security
Alexandria Ocasio-Cortez (D-NY) just gained approval from an unlikely ally: National Economic Council Director Larry Kudlow. Said House majority leader Steny Hoyer, Democrat of Maryland, "I think all staffers ought to allow their members to speak".
NY man has misogynistic meltdown in bagel shop, then gets tackled
Suffolk County Police responded to Bagel Boss at approximately 9:30 a.m. where there were reports of two men fighting. A shocking video shows a customer at a NY bagel store losing it because he says women reject him over his height.
'Dog the Bounty Hunter' star Leland Chapman hospitalized
Chapman, a Denver native, died June 26 after a battle with cancer . "Beth isn't dead", he said, "she's sleeping". A funeral for Beth Chapman is set to take place in Aurora, Colo., on Saturday (July 13).
Investors will now scan trade and lending data from China on Friday for confirmation on the fallout of the dispute, with the world's second-largest economy expected to have slowed to its weakest pace in at least 27 years. "The Fed chair's cautious stance on the USA economy raised hopes of an imminent interest rate cut that spurred investor sentiments towards safe assets like gold", said Hareesh V, head (commodity research), Geojit Financial Services. Adding to global uncertainties, Iran's alleged attempt to block a British-owned tanker heightened tensions in the Middle East in the wake of attacks on tankers and the downing of USA drone by Iran in June.
The Federal Reserve last month downgraded its US inflation projection for 2019 to 1.5% from the 1.8% projected in March.
However, this may probably not change expectations the USA central bank will cut interest rates this month.
At 1830 IST, the August gold contract on MCX was 0.4% higher at 34,980 rupees per 10 gm and the same-month contract on COMEX was up 0.7% at $1,422.20 an ounce. Echoing the dovish sentiment, the minutes from Fed's June policy meeting showed many policymakers thought more stimulus would be needed soon, reinforcing the case for a U.S. interest rate cut in July.
Prices had dropped to $1,389.55 earlier in the session.