Gold Falls on Fed's Hawkish Shift
Gold prices fall after the Federal Reserve lowered interest rates by 25 basis points but signaled fewer cuts next year, boosting the U.S. dollar and bond yields.
The U.S. central bank expects inflation to be stickier than previously anticipated, with new projections indicating only two quarter-point rate cuts in 2025. At a meeting in September, the Fed had projected four quarter-point cuts. "The Fed's hawkish shift means we're going to have to contend with a strong dollar well into 2025," analysts at Peak Trading Research say. Gold futures trade 0.8% lower at $2,631.20 a troy ounce. Traders now await U.S. GDP and PCE inflation data, which could further shape the path of monetary policy next year.
Source : Dow Jones Newswires
