Gold prices maintained a prolonged positive momentum supported by falling US Treasury yields and a weaker US dollar, following the potential interest rate cut by the Federal Reserve (Fed) despite the release of the latest economic data that was seen as strong.
At 9.15 am, gold prices were at $4,157, down slightly by 0.14% since it opened in early trading on Thursday in the Asian session.
The latest economic reports did not seem to change any decision on the potential interest rate cut by the Fed for the December meeting.
US data revealed that the number of Americans filing for unemployment benefits fell from the previous week, reaching the lowest level since mid-April, according to the US Labor Department.
Durable Goods Orders for September topped expectations but declined from the August print, the US Census Bureau revealed.
Looking ahead to the geopolitical conflict, tensions between China and Taiwan have heated up again after Taiwan's Defense Ministry commented that Beijing is preparing to retaliate against Taiwan.
Taiwan added that a special defense budget running from 2026 to 2030 will include missiles and drones, to counter Chinese threats.
In addition, the prospect of a possible end to the Russia-Ukraine war is seen increasing as a Russian official said that some elements of the US plan in Ukraine are considered positive, but there are still matters that need further discussion, according to Al Jazeera.
A peace agreement could put negative pressure on gold prices, which usually find support when geopolitical risks are high.
Conversely, the Fed's more dovish stance continues to hinder the strengthening of the US dollar, which has depreciated following the central bank's monetary easing cycle.
