FX.co ★ Gold Holds Decline

Gold remained steady at approximately $3,650 per ounce on Thursday, maintaining its losses from the previous session due to a strengthening US dollar following the Federal Reserve's policy announcement. As anticipated, the Fed reduced interest rates by 25 basis points and hinted at the possibility of a gradual decline in borrowing costs for the remainder of the year. However, Federal Reserve Chair Jerome Powell expressed caution regarding additional rate cuts, characterizing the recent adjustment as a precautionary response to a weakening labor market. He emphasized that the central bank will adopt a "meeting-by-meeting" strategy to evaluate the future trajectory of interest rates. Gold has surged 39% so far this year, driven by expectations of Fed rate cuts, ongoing geopolitical tensions, and strong demand from central banks. Meanwhile, in India, the supply of used gold jewelry and coins remains scarce as investors hold onto their gold, anticipating further price increases despite weekly record highs.