By Jesse Cohen
Investing.com - Gold prices held above the key psychological level of $1,500 on Thursday, as jitters surrounding the U.S.-China trade war and expectations for more monetary easing from the Federal Reserve burnished the appeal of the yellow metal.
Comex gold futures were at $1,507.45 a troy ounce by 6:50AM ET, down $12.15, or 0.8%.
On Wednesday, prices soared 2.4% to breach the $1,500 barrier for the first time since April 2013, rising as high as $1,522.70.
The precious metal is up 5% so far this month as investors have increasingly come to fear the protracted trade dispute between Washington and Beijing could tip the global economy into recession.
That, in turn, has fueled expectations that the Fed and other major central banks would have to take drastic action to support the economy.
Chicago Fed President Charles Evans signaled on Wednesday he was open to lower rates to counter risks to economic growth from trade tensions.
Futures moved to price in a 100% probability of a Fed easing in September and a near 24% chance of a half-point cut. Some 75 basis points of easing is implied by January, with rates ultimately reaching 1%.
Central banks in New Zealand, India, Thailand and the Philippines have all cut interest rates this week amid growing fears that the U.S.-China trade war could aggravate a slowdown in the global economy.
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-- Reuters contributed to this report