PT Rifan Financindo Berjangka – 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
Gold Extends Losses After Fed Cuts Rates, Signals Less Easing
Gold extended declines after the Federal Reserve lowered interest rates and forecast less monetary easing for 2025.
Policymakers lowered their benchmark interest rate for a third consecutive time, but reined in the number of cuts they expect in 2025, signaling greater caution over how quickly they can continue reducing borrowing costs.
New quarterly forecasts showed several officials penciled in fewer rate cuts for next year than they estimated just a few months ago. They now see their benchmark rate reaching a range of 3.75% to 4% by the end of 2025, implying two quarter-percentage-point cuts, according to the median estimate.
Treasury yields and the dollar surged after the rate decision, sending bullion lower by as much as 1.2%. Lower rates typically benefit bullion as it pays no interest. Swap traders now see less easing after the statement from the Federal Open Market Committee.
Spot gold was 1.1% lower at $2,617.50 an ounce as of 2:09 p.m. in New York. Silver, palladium and platinum were all lower. PT Rifan Financindo Berjangka.
Source: Bloomberg