Gold Rises Slightly as Dollar Weakens
Gold prices rose on Thursday, helped by a weaker US dollar after the Fed cut interest rates 25 bps and signaled a gradual easing path this year. Spot gold rose 0.2% to $3,668.34/oz (10:11 GMT), still below the record $3,707.40 reached on Wednesday before closing down 0.8%. December futures, however, fell 0.4% to $3,703.
The US dollar pared gains and approached a two-month low, while 10-year Treasury yields fell—a combination that typically supports gold. City Index/FOREX.com analyst Fawad Razaqzada said the weaker dollar was helping prices, with the Fed's dot plot signaling two more cuts this year.
Chairman Jerome Powell called these moves "risk-managed" cuts in response to labor market weakness and emphasized a "meeting-by-meeting" approach. Market participants are now pricing in a 90% chance of another 25 bps cut at the October meeting, while the lower interest rate narrative is generally positive for non-yielding assets like gold.
Bullish sentiment remains intact. Independent analyst Ross Norman predicts the potential for further record highs, and ANZ sees gold outperforming in the early stages of the easing cycle, supported by demand for hedge assets amid geopolitical uncertainty. In other metals, silver rose 0.4% to $41.84/oz, platinum rose 1.5% to $1,383.60, while palladium fell 0.7% to $1,146.55.
Key points:
Spot gold rose 0.2% to $3,668.34; still below the record high of $3,707.40.
The dollar weakened and the 10-year yield fell → supporting gold prices.
The Fed cut 25 bps; the market is pricing in a 90% chance of another cut in October.
The near-term outlook remains constructive: new records are likely to continue.
Silver rises, platinum strengthens, palladium weakens. (ads)
Source: Newsmaker.id
