FX.co ★ Gold Extends Rebound

Gold prices edged closer to $4,000 per ounce on Thursday, putting an end to a four-day decline, as robust central bank purchases continued to bolster the market. The World Gold Council reports that global central banks acquired approximately 220 tons of gold in the third quarter, a 28% increase from the previous quarter, counteracting an earlier slowdown. Kazakhstan was the largest buyer, while Brazil purchased gold for the first time in over four years. Despite this upward momentum, further gains were tempered by a trade agreement between the US and China. President Trump announced a one-year accord on rare earths and critical minerals, reducing fentanyl tariffs to 10%. In exchange, Beijing committed to curbing fentanyl production and resuming purchases of US soybeans. Additionally, Federal Reserve Chair Powell warned that a December interest rate cut is not assured, which has kept the dollar strong. Meanwhile, the European Central Bank (ECB) left interest rates unchanged, indicating it would not commence easing measures until early 2026. This stance adds a slightly hawkish contrast to the Federal Reserve and limits the upside potential for gold.