Gold Surge Up By Weakening Dollar As Expectations Of Aggressive Fed Hike Recede

gold prices

GOLD : was up on Friday morning in Asia as expectations of aggressive interest rate hikes from the U.S. Federal Reserve receded.

Gold futures were up 0.40% to $1,757.30 by 11:37 PM ET (3:37 AM GMT). The dollar which normally moves inversely to gold, edged down on Thursday morning. The dollar has spent most of July hovering around 20-year highs.

U.S. Gross Domestic Product (GDP) released on Thursday fell at a 0.9% annual rate in the second quarter, which lifted bullion’s safe-haven allure.

The U.S. Federal Reserve on Wednesday raised interest rates by 75 basis points to 2.25-2.5% as markets expected. Fed Chair Jerome Powell sounded less hawkish in his press conference, saying the final rate hike decision at the September meeting will be determined by the incoming economic data.

Elsewhere, US President Joe Biden and Chinese President Xi Jinping plan to have an in-person meeting, which would be the first face-to-face one between the men.