Gold prices slipped further in Asian trading on Thursday, extending the volatile reaction to the Federal Reserve’s rate cut and cautious outlook.
Spot gold fell to $3,633.72 before recovering to $3,655.74 per ounce by 09:30 GMT, after a turbulent overnight session that saw bullion dump, spike to fresh records, and reverse again.
The Fed on Wednesday lowered its benchmark rate by 25 basis points to 4.00%–4.25%, its first cut since December, while projecting two additional reductions this year and just one in 2026. The move, widely anticipated, underscored a measured approach to policy easing.
Chair Jerome Powell described the cut as a “risk-management” step, citing softening labour conditions and elevated employment risks. He emphasised a meeting-by-meeting approach, signalling that aggressive easing is unlikely.
Markets remain sceptical that the outlined path will be enough to revive growth. The US dollar rebounded on Thursday, making gold more expensive for non-dollar holders and weighing on demand.
Gold has gained nearly 39% in 2025, supported by central bank buying, geopolitical risks and expectations of looser monetary policy. The Fed’s cautious tone, however, has prompted profit-taking after bullion’s surge to record highs.