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Gold prices slipped in Asian trade on Thursday, retreating from fresh record peaks after the Federal Reserve cut interest rates but signaled a measured approach to future easing, helping the U.S. dollar rebound.
Spot and Futures Weaken After Fed Decision
Spot gold fell 0.7% to $3,635.55 an ounce by 02:24 ET (06:24 GMT), extending losses from the prior session where it hit an all-time high of $3,707.40. U.S. Gold Futures for December delivery also declined 1.3% to $3,670.45.
The drop came as the U.S. Dollar Index gained 0.4%, rebounding from a 3½-year low. A stronger dollar makes bullion more expensive for buyers using other currencies, curbing demand.
Fed Cuts 25bps, But Flags Measured Path
The Federal Reserve lowered its benchmark rate by 25 basis points to a 4.00%–4.25% range, its first move since December. Policymakers projected two additional cuts this year, but only one in 2026—highlighting a restrained outlook.
Chair Jerome Powell called the reduction a “risk-management cut,” citing labor market weakness. He emphasized that future decisions will be taken meeting by meeting, tempering expectations of an aggressive easing cycle.
Analysts at ING noted: “They think three more cuts will be enough to boost growth and revive jobs, but the market remains skeptical.”
Gold Still Up Nearly 40% YTD
Despite the recent pullback, bullion has surged almost 39% in 2025, supported by rate-cut expectations, geopolitical risks, and sustained central bank buying. However, the Fed’s cautious stance prompted some investors to lock in profits after gold’s meteoric rise.
Broader Metals Under Pressure
Other metals also struggled as the greenback strengthened. Silver Futures dropped 1.1% to $41.72 per ounce, Platinum Futures were little changed at $1,370.80, while Benchmark Copper on the LME slipped 0.5% to $9,945.80 a ton. U.S. Copper Futures also fell 0.5% to $4.60 per pound.
