​EBC Markets Briefing | Bullion firms following Fed cut; caterpillar hit a record

Gold prices inched higher on Thursday, supported by a slight pullback in the dollar, while markets waited to see if Trump and his Chinese counterpart Xi would thrash out a trade deal.

Beijing had been more circumspect about the prospects of an agreement, but in a possible sign of thawing relationship, China bought its first cargoes of US soybeans in several months, Reuters reported.

The Fed approved its second straight interest rate cut, though Chair Jerome Powell rattled markets when he threw doubt on whether another reduction is coming in December.

Trump just instructed the Pentagon to restart nuclear weapons testing "on an equal basis," in response to Moscow test firing of its new Burevestnik nuclear cruise missile earlier this month.

Gold's upsurge in the past few years has been driven by demand from investors who see it as a hedge against geopolitical uncertainty, sticky inflation and US dollar decline.

Many analysts say they remain confident in long-term prospects. Banks including HSBC, BofA and Société Générale all have a $5,000 price target for bullion next year.

The formation of head and shoulders pattern suggests bullion risks are tilted towards the downside. As such a push below $3,920 looks very likely.

Asset recap

As of market close on 29 October, among EBC products, Caterpillar shares led gains. The company topped Q3 profit and revenue estimates as AI push drove demand for its energy equipment.

Adobe extended its weak performance in 2025. Investors have been weighing fresh competition in AI and cloud software, areas where Adobe faces rising challengers.

Japan's Nikkei index surged past the key 51,000 level for the first time on Wednesday as Takachi met with Trump; Australia stocks defied global risk sentiment following a red-hot inflation report.

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