FX.co ★ Gold Extends Losses

Gold continued its downward trend, settling around $3,360 per ounce on Thursday. This decline is attributed to a conservative outlook on US interest rates, which has dampened demand for the non-interest-bearing metal. As anticipated, the Federal Reserve maintained its benchmark rate, expressing concerns over increasing risks of inflation and unemployment. This underscores the Fed's prudent approach to any future rate adjustments. Fed Chair Jerome Powell emphasized that the central bank is not considering a proactive rate cut to mitigate potential economic impacts from tariffs. At the same time, ongoing uncertainty in the US-China trade discussions prevented further significant drops in gold prices. President Trump has made it clear he will not lower the US's 145% tariffs on Chinese goods as a negotiation tactic with Beijing, casting doubt on the possibility of significant progress ahead of impending meetings between US and Chinese officials in Switzerland.