Africa-Press – Tanzania. The price of gold per ounce saw another significant level, exceeding $4,200, on Wednesday, amid growing anticipation of additional US interest rate reductions, and escalating concerns over US-China trade relations.
The price of gold increased by 1.44% to reach $4,202 per ounce as of 0737GMT, while it gained around 60% on an annual basis.
Silver prices also rose by 2.54% to $52.7, with its record level last week exceeding $53.2.
Amid debates on the federal government shutdown in the US, Fed Chair Jerome Powell indicated that the US job market is still underperforming, although the overall economy “might be on a slightly stronger path than anticipated,” noting that decisions on interest rates would proceed on a “meeting-by-meeting” approach, weighing labor market challenges against ongoing inflation that exceeds targets.
Market participants are expecting an almost guaranteed 25-basis-point rate cut by the Fed in both October and December.
Meanwhile, US President Donald Trump stated that the US is contemplating severing certain trade connections with China, including those related to cooking oil. The two nations started applying reciprocal port fees on Tuesday.
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