Gold retreats further on Thursday
Gold declined toward $3,630 per ounce on Thursday, extending its retreat from the previous session, pressured by a rising US dollar following the Federal Reserve’s policy decision.
The Fed cut interest rates by 25 bps as expected and signaled that borrowing costs may continue to decline gradually through the rest of the year.
However, Chair Jerome Powell struck a cautious tone on further easing, describing the move as a risk-management measure in response to a softening labor market.
He added that the central bank will take a “meeting-by-meeting” approach to assessing the future path of interest rates.
Gold has risen 39% so far this year, supported by Fed easing expectations, ongoing geopolitical tensions, and strong central bank demand.
Elsewhere, supplies of used gold jewelry and coins in India remain limited, as investors hold onto bullion, anticipating further price gains despite weekly record highs.
UCapital Asset Management LLP or group companies may have commercial relationships with the companies mentioned. This content is not financial advice.
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