Gold hits one-month low after Fed signals slower easing pace in 2025
Gold slipped more than 1% to a one-month low on Wednesday after the U.S. Federal Reserve lowered interest rates as expected, but noted it will slow the pace at which borrowing costs fall any further, boosting the dollar and Treasury yields.
U.S. central bankers issued fresh projections calling for two quarter-point interest-rate cuts next year amid rising inflation, a forecast consistent with a wait-and-see approach come January as Donald Trump takes the White House.
Spot gold was down 1.5% at $2,606.64 per ounce by 02:56 p.m. ET (1956 GMT), its lowest since Nov. 18. U.S. gold futures settled 0.3% down at $2,653.30.
Fed Chair Jerome Powell said that Fed policymakers want to see more progress on bringing inflation down as they consider the path of future rate cuts.
Traders now will be watching out for key U.S. GDP and inflation data due later this week that could further shape expectations around monetary policy.
"I do see the consolidation as a continuation pattern within the longer-term uptrend in gold. I think that trend will re-exert itself in the first quarter of 2025," said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Elsewhere, spot silver fell 2.3% to $29.83 per ounce, platinum slipped 1.8% to $922, while palladium declined 2.5% to $910.94.
Source: Reuters
