Gold Stable After Retreating From Record in Wake of US Rate Cut
Gold was steady following a tumultuous session in which it touched a record high after the Federal Reserve cut rates by 50 basis points, before retreating as Chair Jerome Powell signaled policymakers aren't in a rush to ease aggressively.
Bullion traded near $2,560 an ounce, after slipping 0.4% on Wednesday. While the Fed decision marked an aggressive start to a policy shift aimed at bolstering the US labor market, Powell said no one should see this as a "new pace." Lower borrowing costs tend to benefit the precious metal, which doesn't yield interest.
Projections released after the Fed's two-day gathering showed a narrow majority — 10 of 19 officials — favored lowering rates by at least an additional half-point over the central bank's two remaining meetings this year.
Gold has rallied by almost a quarter this year, with gains supported by the prospect of Fed easing. Central-bank buying and strong haven demand due to conflicts in the Middle East and Ukraine have helped the advance, while interest from retail investors has also picked up.
Spot gold was little changed at $2,558.68 an ounce as of 7:11 a.m. in Singapore, down from Wednesday's all-time high of $2,600.16. The Bloomberg Dollar Spot Index was stable. Silver and palladium were flat while platinum declined.
Source : Bloomberg
