Gold Prices Flat as Fed's Less Dovish Outlook Offsets Rate Cut Optimism
In Asian trade on Thursday, gold prices remained flat-to-low as the Federal Reserve's less dovish signals tempered optimism over a significant rate cut. The strength of the US dollar pressured bullion prices, leading to some profit-taking after hitting record highs prior to the Fed decision.
Gold futures rose slightly to $2,561.30 an ounce, while spot prices pulled back from recent highs. The Fed cut rates by 50 basis points, but Fed Chair Jerome Powell's less dovish outlook on the economy dampened market expectations for further cuts.
Despite this, the prospect of lower rates is beneficial for non-yielding assets like gold, as it decreases the opportunity cost of investing in the precious metal. Other precious metals also saw slight gains, with copper prices rising amid expectations of stimulus measures from China.
Overall, the Fed's rate cut and outlook have mixed implications for the markets. Investors should monitor future Fed actions and economic indicators to assess the impact on their investments and financial decisions.