Gold pares some losses as Dollar eases from highs
Gold (XAU/USD) is trading higher on Thursday, clawing back some of the losses incurred on Wednesday following the Federal Reserve’s (Fed) monetary policy decision.
At the time of writing, the precious metal has reached the $2,620 area after bouncing off a low of $2,580 the previous day.
The Fed cut interest rates as expected but raised growth and inflation expectations and lowered its projection for rate cuts for next year.
This, coupled with an unusually hawkish tone from Fed Chair Jerome Powell, triggered a risk-off reaction, causing the US Dollar Index (DXY), which tracks the USD against a basket of six major currencies, to test two-year highs and crush Gold and equities.
Source: FXStreet