Gold prices edged up in Asian trading on Friday, extending gains for a fifth consecutive week following the U.S. Federal Reserve’s widely expected interest rate reduction earlier this week.
Spot gold increased 0.2% to $3,650.14 an ounce by 02:25 ET (06:25 GMT), after reaching an all-time peak of $3,707.40 on Wednesday. U.S. December Gold Futures also rose 0.2% to $3,683.70. The metal had declined 1.3% over the previous two sessions as the dollar rebounded from three-year lows after Fed Chair Jerome Powell struck a cautious tone regarding future easing.
At Wednesday’s Federal Open Market Committee meeting, the Fed cut its benchmark rate to 4.00%-4.25%, the first reduction since December. The Fed’s “dot plot” projections suggested two further cuts before year-end, with only one more expected in 2026. Stephen Miran dissented, calling for a more aggressive 50-basis-point reduction.
Gold had surged ahead of the meeting amid expectations for looser monetary policy and concerns about the Fed’s independence, though markets had discounted a large cut due to labor market weakness and rising unemployment risks. Powell described the rate cut as a “risk-management” measure, emphasizing that future decisions would be made on a meeting-by-meeting basis given uncertainties around inflation and growth.
The yellow metal dipped slightly post-meeting as the U.S. dollar strengthened, with the Dollar Index up 0.1% after significant gains over the past two sessions.
Elsewhere, the Bank of Japan held rates steady at 0.5% amid political uncertainties and U.S. trade concerns.
Other metals were mostly higher: Silver Futures rose 0.7% to $42.415 per ounce, Platinum Futures were steady at $1,396.60, London Metal Exchange Copper climbed 0.3% to $9,983.50 a ton, and U.S. Copper Futures gained 0.2% to $4.61 a pound.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.