Gold Prices Fall From Record Highs as Dollar Strengthens After Fed Cut

Gold prices extended losses in Asian trading on Thursday, slipping from record levels as the U.S. dollar rebounded. The move followed the Federal Reserve’s widely expected rate cut and its cautious outlook on further policy easing.

Gold Prices Retreat After Record Rally

Spot gold dropped 0.7% to $3,635.55 per ounce by 02:24 ET (06:24 GMT), adding to a nearly 1% decline in the previous session when it hit a record $3,707.40. U.S. gold futures for December delivery fell 1.3% to $3,670.45.

Fed Cuts Rates, Signals Caution Ahead

The Federal Reserve lowered its benchmark rate by 25 basis points to 4.00%–4.25%, its first cut since December. Policymakers projected two more cuts this year but only one in 2026, highlighting a cautious approach.

Fed Chair Jerome Powell called the move a “risk-management cut,” citing risks from a weakening labor market. He also stressed that future decisions will be taken on a meeting-by-meeting basis, signaling no rush toward aggressive easing. Analysts at ING noted that markets remain skeptical about whether limited cuts will be enough to revive growth.

Dollar Strength Pressures Precious Metals

The U.S. Dollar Index climbed 0.4% on Thursday, rebounding from a 3½-year low. A stronger dollar makes gold more expensive for buyers using other currencies.

Despite the pullback, gold has gained nearly 39% so far this year, supported by expectations of looser monetary policy, geopolitical risks, and strong central bank purchases. However, the Fed’s cautious stance prompted profit-taking after bullion’s record-breaking rally.

Other Metals Under Pressure

Silver futures fell 1.1% to $41.72 per ounce. Platinum futures held steady at $1,370.80. Copper also slipped, with London Metal Exchange contracts down 0.5% at $9,945.80 per ton, and U.S. copper futures down 0.5% at $4.60 per pound.