Gold prices slipped in Asian trading on Thursday as markets reacted to a mostly dovish Federal Reserve outlook. Silver also pulled back after touching a new record high earlier in the session.
Broader metals traded mixed. The Fed cut interest rates as expected and signaled that future cuts will require stronger evidence. However, the central bank also announced plans to expand its asset-buying program, which investors interpreted as dovish.
Gold and other precious metals saw some profit-taking after strong gains leading into Wednesday’s Fed meeting.
Spot gold fell 0.5% to $4,207.49 an ounce, while March gold futures edged 0.3% higher to $4,235.50 an ounce by 00:39 ET (05:39 GMT).
Silver retreats from fresh record high
Spot silver dipped slightly to $61.8095 an ounce after earlier reaching a record of $62.8895.
The metal surged over the past week on expectations of tighter supply and improving demand in 2025. Silver also benefited from safe-haven interest similar to gold but at a more accessible price level.
Silver prices have more than doubled in 2025, outpacing gold’s gains. Its classification as a U.S. “critical mineral” has further strengthened demand.
Gold pulls back following Fed rate cut
Metal prices moved in a narrow, slightly lower range on Thursday as traders digested the Fed’s policy decision.
The Fed delivered a widely anticipated 25-basis-point rate cut. Chair Jerome Powell signaled that future reductions will have a higher threshold.
But in a move seen as dovish, the central bank said it will resume buying Treasury bills at an initial pace of $40 billion per month to increase liquidity.
This asset-purchase plan—often described as a form of quantitative easing—is expected to boost liquidity in the coming months. Treasury yields moved lower following the announcement.
Analysts at OCBC said the Fed’s decision was less hawkish than feared. They expect one 25-basis-point cut in 2026 based on the latest projections and Powell’s comments.
Gold rallied strongly before the Fed meeting, as did other metals, and some profit-taking followed Wednesday’s decision.
Spot platinum inched up 0.2% to $1,661.18 an ounce after earlier losses.
In industrial metals, benchmark copper on the London Metal Exchange rose 0.4% to $11,608.45 per ton.
