Gold remained capped below the key US$4,250 level on Thursday, pausing a two-day rally as traders reassessed the Federal Reserve’s latest policy decision and shifted their focus toward upcoming United States employment data.
By 3:50 pm AEDT (4:50 am GMT), spot gold was trading 0.4% lower at $4,211.77 per ounce after retreating from early Asian-session highs of $4,247.81.
The metal extended its overnight gains at the open but met renewed selling pressure as profit-taking emerged.
Gold’s recent momentum was fuelled by a broadly softer U.S. dollar and falling Treasury yields, after the Fed delivered a widely expected 25 basis point cut to 3.5%–3.75%.
Chair Jerome Powell adopted a measured tone at his post-meeting press conference, indicating that further reductions are unlikely until it sees more definitive evidence of a cooling labour market and inflation that “remains somewhat elevated.”
Markets continued to price in two additional rate cuts next year, diverging from the Fed’s own projections for just one more.
With the major risk event now past, attention turns to incoming U.S. labour indicators. Weekly jobless claims data will be closely watched for clues on employment conditions ahead of next week’s delayed nonfarm payrolls release.
Meanwhile, spot silver touched fresh record valuations of $62.74 per ounce earlier in the session, extending its year-to-date gain to 113% amid robust industrial demand, declining inventories and its recent inclusion on the U.S. critical minerals list.
