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Gold prices hit record highs in two weeks on Thursday, as dollar easing after weaker-than-expected US housing data raises expectations for interest rate cuts by the US Federal Reserve.
Spot gold remained steady at $ 1,425.87 an ounce at 0:27 GMT, after reaching its highest level since July 3 at $ 1,428.40.
Gold futures in the US rose 0.3% to $ 1,427.30 an ounce.
The dollar index was down 0.1 from a basket of major currencies on Thursday, making gold cheaper for investors holding other currencies.
The index climbed to a one-week high in the previous session with stronger than expected US retail sales. But it fell slightly, as Treasury yields fell as a result of weak US housing data and worries about the unresolved trade dispute between the United States and China.
US housing construction fell for a second consecutive month in June and permits dropped to their lowest level in two years, suggesting that the housing market continued to struggle despite falling mortgage rates.
The Fed is set to lower interest rates by 25 basis points at its end-of-month monetary policy meeting. Some in the market are even betting on a 50 basis point discount.
The Fed announced on Wednesday that the US economy continued to grow at a "modest" pace in recent weeks as consumers continue to spend and "overall positive" prospects overall, despite the disruptions caused by the US economy. US trade policy.
Earlier in the week, US President Donald Trump kept pressure on Beijing by threatening to put additional duties of $ 325 billion on Chinese products, as markets worried about the resumption of talks. face to face.
Asian stocks fluctuated on Thursday morning, as Wall Street stocks fell, suggesting that the US-China trade war could hurt corporate profits.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.48% to 803.18 tonnes on Wednesday, from 799.37 tonnes on Tuesday.
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