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Gold prices declined in Asian trading on Thursday as markets absorbed the Federal Reserve’s latest policy signals, while silver eased after briefly touching a new all-time high earlier in the session.
Metal markets were mixed overall. Although the Fed cut interest rates as expected and announced a major liquidity-boosting plan, policymakers also emphasized that future rate cuts will require a higher bar, tempering the dovish mood. After strong rallies ahead of the meeting, gold and silver saw rounds of profit-taking.
Spot gold slipped 0.5% to $4,207.49 an ounce, while gold futures for March edged 0.3% higher to $4,235.50/oz by 00:39 ET (05:39 GMT).
Silver Pulls Back After Hitting Fresh Record High
Spot silver dipped to $61.8095/oz, after earlier touching a new record of $62.8895/oz.
Silver has surged sharply in recent weeks on expectations of tightening global supply, stronger industrial demand, and renewed safe-haven flows. The metal has more than doubled in 2025, outperforming gold, supported further by the U.S. government’s designation of silver as a critical mineral—a move that intensified investor interest.
Gold Retreats Despite Fed Cut, QE-Style Boost
Gold’s pullback came after the Federal Reserve:
- Cut interest rates by 25 bps (widely expected)
- Signaled a higher threshold for additional cuts
- Announced it will begin buying $40 billion per month in Treasury bills, increasing liquidity
While Powell’s tone hinted at caution, markets viewed the resumed asset-purchase program as decisively dovish. Treasury yields fell immediately after the announcement.
Analysts at OCBC noted the decision was “not as hawkish as feared,” and maintained expectations for one additional 25-bp cut in 2026.
Gold had rallied strongly in the days leading up to the meeting, making the metal vulnerable to near-term profit-taking.
Broader Metals Mixed
- Spot platinum rose 0.2% to $1,661.18/oz after earlier losses.
- Copper futures (LME) climbed 0.4% to $11,608.45 per ton, supported by improving risk sentiment and expectations of added market liquidity.
