Trump Administration Ups Ante on Trade War

The US Dollar is holding firm against the Euro in early Thursday trade after the Federal Reserve gave an upbeat assessment of the economy and remained on course to gradually raise interest rates. As was widely expected, the Fed left interest rates unchanged and remarked that economic growth in the country had been rising strongly. It further noted that the jobs market continued to display strength, while inflation managed to remain near the Central Bank's 2.00% target since its last policy meeting in June. The Fed currently anticipates conducting another two rate hikes before the year ends.

Gold prices edged higher in early Thursday trade, modestly recovering from a decline in the previous session when the US Federal Reserve left interest rates on hold. Spot gold was last seen around $1,218.50 per troy ounce, up 0.20%, following the -0.65% slide a session prior. SPDR Gold Trust, the world's biggest gold-backed exchange-traded fund, said its holdings decreased -0.40% on Wednesday to 796.96 tonnes, from 800.20 tonnes on Tuesday. In key economic news, China's Central Bank will fine-tune monetary policy in a "pre-emptive" attempt to make sure liquidity remains ample amid a spike in trade tension with the United States.