WASHINGTON (dpa-AFX) - Gold prices rebounded on Thursday after experiencing a significant drop following the Federal Reserve's 50-bps rate cut and Chair Jerome Powell's remarks emphasizing a cautious approach to managing economic growth and inflation.
Spot gold jumped 1.1 percent to $2,588.07 per ounce despite the dollar bouncing off its over one-year low. U.S. gold futures were up half a percent at $2,611.20.
The Fed's first cut in more than four years on Wednesday was accompanied by projections indicating an additional 50 basis points of cuts across the remaining two policy meetings this year, and another full percentage point of interest rate cuts in 2025.
That's a bit less aggressive than the expectations of futures traders, as per the CME FedWatch tool.
Meanwhile, the Bank of England (BoE) is due to announce its monetary policy decision at 7:00 AM ET.
The BoE is expected to maintain its bank rate at 5.00 percent, with markets likely to focus on the pace of quantitative tightening program.
The bank could unveil another GBP 100 billion reduction in gilt holdings over the coming twelve months.
In economic releases, reports on U.S. weekly jobless claims, current account data for the second quarter, U.S. Philadelphia Fed manufacturing index for September, existing home sales for August and U.S. leading index for August are slated for release in the New York session.
Markets also kept a close eye on events in the Middle East after walkie-talkies and handheld radios, acquired along with pagers aimed at over 3,000 Hezbollah members, exploded in three areas of Lebanon on Wednesday, resulting in 20 fatalities and injuring at least 450 people.
Security sources said Israeli spy agency Mossad was responsible, but Israeli officials did not comment on the attacks.
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