Gold holds around $1,500/oz on trade war, global growth woes

Gold held steady on Thursday, hovering near the key psychological level of $1,500, supported by uncertainties around Sino-US trade war and a slew of interest rate cuts by global central banks amid fears of an economic slowdown.

Spot gold was little changed at $1,499 per ounce as of 0722 GMT.

On Wednesday, prices soared over 2% to breach the $1,500 barrier for the first time since April 2013.

US gold futures were down 0.6% at $1,510.10 an ounce.

“The moves by central banks around the world are very important, and the focus we are getting on currency markets for potential for competitive devaluation remains supportive for gold,” said Michael McCarthy, chief market strategist, CMC Markets.

“There is an important resistance zone around $1,525. Given the speed of the rise in gold prices, we may have to see some period of consolidation before there is any test of that higher level.”

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