Gold holds firm after US Fed rate cut

11.7.24 - Gold holds firm after US Fed rate cut

Gold last traded at $2,705 an ounce. Silver at $32.04 an ounce.

Gold holds firm after US Fed rate cut, softer dollar -Reuters

Gold prices rose more than 1% on Thursday, helped by a retreat in the U.S. dollar, while the Federal Reserve cut interest rates by a quarter of a percentage point as widely expected.

Spot gold was up 1.2% at $2,691.36 per ounce as of 2:22 p.m. EST (1919 GMT), after dropping to a three-week low on Wednesday. U.S. gold futures settled 1.1% higher at $2,705.80.

At the end of a two-day policy meeting, the U.S. central bank lowered the benchmark overnight interest rate to the 4.50%-4.75% range, with policymakers taking note of a job market that has "generally eased".

Lower U.S. interest rates put pressure on the dollar and bond yields, increasing the appeal of non-yielding bullion.

"Gold remains in a strong bull market and no event this week, from the election to today's Fed decision, is likely to change that," said Tai Wong, an independent metals trader.

"Unless Powell leans towards a pause today, gold is likely to take back yesterday's knee-jerk losses," Wong added.