Gold Prices Fall as Traders Bet on Slower Fed Rate Cuts

Gold prices extended their decline in Asian trading on Wednesday, as growing expectations of slower rate cuts by the Federal Reserve weighed on the market. A stronger U.S. dollar, supported by rising Treasury yields, added pressure on metals.

• Spot gold slipped 0.2% to $2,615.90 per ounce, while December gold futures inched down to $2,634.20 per ounce by 00:57 ET (04:57 GMT). Earlier this month, spot gold had hit a record high of $2,685.96 per ounce.

Fed and Inflation Data in Focus

The decline in gold comes amid uncertainty over U.S. interest rates. Traders are increasingly betting that the Fed will opt for a smaller 25 basis point rate cut in November, following a 50 basis point cut in September that marked the beginning of an easing cycle.

Strong U.S. payroll data for September has raised questions about the Fed’s need to continue aggressively cutting rates, boosting the dollar and reducing gold’s appeal. The release of the Fed’s September meeting minutes later on Wednesday and consumer price index (CPI) inflation data on Thursday are expected to provide more clarity on future rate decisions.

Other Precious Metals Mixed

• Platinum futures dipped 0.1% to $964.90 per ounce.
• Silver futures rose 0.8% to $30.865 per ounce, recovering from recent losses.