Gold prices edged higher in Asian trading on Friday, keeping the metal on track for a fifth consecutive weekly gain. The move came after the U.S. Federal Reserve delivered its widely expected rate cut earlier this week.
Spot gold rose 0.2% to $3,650.14 an ounce by 02:25 ET (06:25 GMT), following a record high of $3,707.40 reached on Wednesday. U.S. gold futures for December delivery also gained 0.2% to $3,683.70.
The precious metal slipped 1.3% in the previous two sessions as the dollar rebounded from multi-year lows after Fed Chair Jerome Powell struck a cautious tone on future easing.
Fed rate cut supports bullion, dollar rebound weighs
At its meeting on Wednesday, the Federal Open Market Committee cut rates to 4.00%-4.25%, marking the first reduction since December. Updated projections pointed to two more cuts by year-end, though only one more was forecast for 2026.
Stephen Miran dissented, favoring a larger 50-basis-point move. Gold prices had rallied sharply before the decision, supported by easing expectations and concerns over Fed independence.
Powell described the cut as a “risk-management” step, noting a weakening labor market and elevated uncertainty over inflation. He stressed that future moves would be assessed meeting by meeting.
Gold prices dipped briefly after the decision as the dollar strengthened. The U.S. Dollar Index rose 0.1% on Friday, extending sharp gains from earlier in the week.
Other central banks and metals
Elsewhere, the Bank of Japan held interest rates at 0.5% on Friday, amid political challenges and pressure from U.S. tariffs.
Other metals also traded higher. Silver futures advanced 0.7% to $42.415 per ounce, while platinum futures stayed flat at $1,396.60. Copper prices gained modestly, with London futures up 0.3% to $9,983.50 a ton and U.S. copper futures rising 0.2% to $4.61 a pound.
