On Thursday, gold is trading higher following the Fed’s decision to cut interest rates by 0.25% which has driven weakness in the US dollar, further boosting the precious metal’s appeal. At the time of writing, GOLD is trading at a little above $1,497.

Fed announced the third rate cut for 2019, as markets were widely expecting, but also cautioned that it would be pausing plans to reduce interest rates further for some time. Gold made some early gains but slid lower after Fed Chair Powell’s press conference where he stated that the US economy was in a good place and that the current monetary policy was adequate to keep it healthy.

The safe haven appeal of gold was boosted early in today’s session after PMI data from China revealed further slowdown in both factory activity and the services sector. Uncertainty around the signing of the “Phase 1” trade deal reigns once again in markets after the APEC summit due to take place in mid-November was cancelled due to violent protests in Chile. Gold is likely to trade bullish until the US and China offer updates on the likely date when the interim trade agreement will be signed.