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Gold traded near USD 4,000 per ounce on Friday, heading for a second consecutive weekly decline.
This week’s cautious tone from the US central bank could weigh on gold.
While the Federal Reserve cut its interest rates by 25 basis points, Chair Jerome Powell signalled that there was no guarantee of further easing in December.
On the geopolitical front, the newly announced trade truce between Washington and Beijing eased global tensions but also reduced immediate safe-haven flows.
Still, doubts persist over the deal’s durability, which could help limit the downside risks for the precious metal to a certain extent. At the same time, persistent instability in Eastern Europe and renewed hostilities in the Middle East could also provide a supportive backdrop.
Adding to the bullish outlook, the World Gold Council reported that central banks added 220 tonnes of gold in Q3, up 28% from the previous quarter, led by purchases from Kazakhstan and Brazil’s first addition in four years.
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